Marigold Corp. incurs the following costs to produce 11000 units of a subcomponent: Direct materials Direct labor Variable overhead Fixed overhead O $10350. O $(3150). O $3150. $8800 13000 13000 An outside supplier has offered to sell Marigold the subcomponent for $2.55 a unit. No fixed overhead costs are avoidable. If Marigold accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be $(3600). 19200
Marigold Corp. incurs the following costs to produce 11000 units of a subcomponent: Direct materials Direct labor Variable overhead Fixed overhead O $10350. O $(3150). O $3150. $8800 13000 13000 An outside supplier has offered to sell Marigold the subcomponent for $2.55 a unit. No fixed overhead costs are avoidable. If Marigold accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be $(3600). 19200
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 3CMA: Aril Industries is a multiproduct company that currently manufactures 30,000 units of Part 730 each...
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![Marigold Corp. incurs the following costs to produce 11000 units of a subcomponent:
Direct materials
Direct labor
Variable overhead
Fixed overhead
$8800
13000
13000
19200
An outside supplier has offered to sell Marigold the subcomponent for $2.55 a unit. No fixed overhead costs are avoidable.
If Marigold accepts the offer, it could use the production capacity to produce another product that would generate additional income
of $3600. The increase (decrease) in net income from accepting the offer would be
O $10350.
O $(3150).
O $3150.
● $(3600).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2de1e05-11a2-4956-93df-df0e240fa387%2Fab440175-c450-4f74-8ff5-dc5fdab38e40%2F78jhoq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Marigold Corp. incurs the following costs to produce 11000 units of a subcomponent:
Direct materials
Direct labor
Variable overhead
Fixed overhead
$8800
13000
13000
19200
An outside supplier has offered to sell Marigold the subcomponent for $2.55 a unit. No fixed overhead costs are avoidable.
If Marigold accepts the offer, it could use the production capacity to produce another product that would generate additional income
of $3600. The increase (decrease) in net income from accepting the offer would be
O $10350.
O $(3150).
O $3150.
● $(3600).
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