Business, 01.12.2021 03:10 debrielcalderon

Dong Fang Company fabricates inexpensive automobiles for sale to 3rd world countries. Each auto includes one wiring harness, which is currently made in-house. Details of the harness fabrication are as follows: lume 900 Units per month Variable cost per unit $8.00 Per unit Fixed costs $14,000 Per month A factory in Indonesia has offered to supply Dong Fang with ready-made units for a price of $14.00 each. Assume that Dong Fang's fixed costs are unavoidable, but that Dong could use the vacated production facilities to earn an additional $7,500 of profit per month. If Dong Fang decides to outsource, what will be the impact on Dong Fang's monthly operational income

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Dong Fang Company fabricates inexpensive automobiles for sale to 3rd world countries. Each auto incl...

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