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Please Show Work Typed On Computer Not Hand Written. Thank you! __________________________________________________________________________ Question 10...

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Question

Accounting

Please Show Work Typed On Computer Not Hand Written. Thank you!

__________________________________________________________________________

Question 10

Quiet Corp. currently makes 2,500 subcomponents a year in one of its factories. The unit costs to produce are:

Description

Per unit

Direct materials

$4

Direct labor

5

Variable manufacturing overhead

2

Fixed manufacturing overhead

3

An outside supplier has offered to provide Quiet Corp. with the 2,500 subcomponents at a $19 per unit price. Fixed overhead is not avoidable.

If Quiet Corp. decides to buy from the outside supplier, the impact to net income will be?

If positive, enter the number, if negative, place a sign before your number.

__________________________________________________________________________

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