Business, 22.11.2019 23:31 kkruvc

Taser industries must decide whether to make or buy some of its components. the costs of producing 175,000 battery packs for its product are as follows: direct materials $15,000 direct labor $5,000 variable overhead $6,000 fixed overhead $9,000 the company has an opportunity to purchase the battery packs for $0.18 per unit, which would eliminate all variable costs, and $2,000 of fixed costs. based on your analysis, what is the net income increase or decrease if the company purchases the battery packs?
a. an increase in net income of $3,500
b. a decrease in net income of $3,500
c. an increase in net income of $5,500
d. an increase in net income of $7,000

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Taser industries must decide whether to make or buy some of its components. the costs of producing 1...

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