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Violet Corporation centy manufactures suticomponent that is used in its main product Violet Corporation currently produces 10,000 subcomponents at the fofwing manufaching costs Direct materials
Violet Corporation centy manufactures suticomponent that is used in its main product Violet Corporation currently produces 10,000 subcomponents at the fofwing manufaching costs Direct materials Direct labor Varable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unt 50 $5 53 $4 115 A supper has offered to supply all the subcomponents needed at a price of $15 Visled determined of variable costs could be eliminated by outsourcing the subcomponent, while at the feed overhead cost is unavoidable At this Viclet has me specific use in mind for the space currently dedicated to producing the subcomponent What would be the proft impact of buying the subcomponents from the supplier? O increase $10,000 Odecrease $10.000 Odecrease $30,000 O increase $30,000 QUESTION 22 Refer to Viet Corporation Based strictly on the incremental analysis, should Violet Corporation buy the subcomponent or continue to make them? O Viclet Corporation should continue to make them O Viet Corporation should buy the subcomponent from the suppler QUESTION 23 Refer to Violet Corporation. What would be the maximum price per unit they would be willing to pay the supper? $14 $11 $15
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