Question
Swifty Corporation can produce 100 units of a component part with the following costs: Direct Materials $19000 Direct Labor 3500 Variable Overhead 17000 Fixed Overhead
Swifty Corporation can produce 100 units of a component part with the following costs:
| Direct Materials | $19000 |
| Direct Labor | 3500 |
| Variable Overhead | 17000 |
| Fixed Overhead | 11000 |
If Swifty Corporation can purchase the units externally for $50000, by what amount will its total costs change?
a. A decrease of $11000
b. An increase of $50000
c. An increase of $10500
d. An increase of $15500
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An Introduction To Business Accounts
Authors: John Harrison, Ron Dawber
1st Edition
9780273019954
