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Simmons Inc. can produce 100 units of a component part with the following costs: Direct Materials $130,000 Direct Labor 103,000 Variable Overhead 82,000 Fixed Overhead
Simmons Inc. can produce 100 units of a component part with the following costs: Direct Materials $130,000 Direct Labor 103,000 Variable Overhead 82,000 Fixed Overhead 62,000 If Simmons Inc. can purchase the units externally for $305,000, by what amount will its total costs change? An decrease of 72,000 An increase of $10,000 An increase of $100,000 A decrease of $52,000
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