Swifty Corporation incurs the following costs to produce 9900 units of a subcomponent:
1.Direc...
Business, 22.04.2020 04:53 djjdjdjdjdNfnd1941
Swifty Corporation incurs the following costs to produce 9900 units of a subcomponent:
1.Direct materials $8316
2.Direct labor 11187
3.Variable overhead 12474
4.Fixed overhead 16200
An outside supplier has offered to sell Swifty the subcomponent for $2.85 a unit.
If Swifty could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by
Answers: 1
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