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Venice Industries manufactures 20.000 components per year. The manufacturing cost of components was determined as follows: Direct materials 200.000 TL Direct labor 320.000 TL Variable
Venice Industries manufactures 20.000 components per year. The manufacturing cost of components was determined as follows: Direct materials 200.000 TL Direct labor 320.000 TL Variable overhead 120.000 TL Fixed overhead 160.000 TL An outside supplier has offered to sell component for 34 TL. Venice Industries can rent its unused manufacturing facilities for 60.000 TL if it purchases the component from the outside supplier. What is the effect on income if Venice purchases the component from the outside supplier? Ltfen birini sein: a. 60.000 TL decrease b. 40.000 TL increase c. 20.000 TL decrease d. 20.000 TL increase e. 60.000 TL increase
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