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Business, 19.03.2021 02:40 Arealbot

JED Industries manufactures 10,000 components per year. The manufacturing cost per component was determined to be as follows: Direct materials $240,000 Direct labor 360,000 Variable manufacturing overhead 80,000 Fixed manufacturing overhead 280,000 Total $960,000 An outside supplier has offered to sell the component for $84. Assume JED Industries could avoid $40,000 of fixed manufacturing overhead if it purchases the component from the outside supplier. If JED purchases the component from the supplier instead of manufacturing it, the effect on income would be a

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