Ice Cold Corporation makes dorm-size refrigerators. The companys records show the following unit costs to manufacture part

Question:

Ice Cold makes dorm-size refrigerators. The company’s records show the following unit costs to manufacture part #15498:
Direct materials ......... $15
Direct labor .......... $18
Variable overhead ....... $23
Fixed overhead ........ $13
Another manufacturer has offered to supply Ice Cold with part #15498 for a cost of $60 per unit. Ice Cold uses 1,000 units annually.

Required
If Ice Cold accepts the offer, what will be the short-run impact on income?\

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...