XY company produces 5,000 units of A. The following costs were incurred for that level of production

Direct Material. AED55,000

Direct Labor. AED160,000

Variable Overhead. AED75,000

Fixed Overhead. AED175,000

If XY company buys 5,000 units of the part from an outside supplier, all variable events can be avoided, while only 40% of the fixed overhead will be available. If the outside supplier offers a unit price of AED68, net income will increase (decrease) by ......... in favor of buying.

AED50,000

AED10,000

AED125,000

Correct answer is not provided

Question 1 N12 XY company produces 5.000 el part 1. The Slowing comes we und later level of produtos Direct materials and55,000 Direct labert 160,000 Variable overhead 75,000 Fixed overhead 175,000 HEXY company buys 5,000 units of the part from a camide sappia, el verable con case y de fisst have the supplier offers a unit price of aed68, tot come il medesby Safora ya and 50,000) aed(10,000) aed125.000 Correct answer is not provided