Murray Corp. currently makes 9,230 subcomponents a year in one of its factories. The unit costs to produce are:

Description	Per unit
Direct materials	$6
Direct labor	2
Variable manufacturing overhead	2
Fixed manufacturing overhead	3

An outside supplier has offered to provide Murray Corp. with the 9,230 subcomponents at a $15 per unit price. Fixed overhead is not avoidable. If Murray 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

Answer rating: 100% (QA)

To determine the impact on net income lets compare the cost of produci... View the full answer