Question: 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

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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

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

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Alanco, Inc. manufactures a variety of products and is currently manufacturing all of its own component parts. An outside supplier has offered to sell one of those components to Alanco. The...

Consider the following production and cost data for two products, X and Y: Product X Product Y Contribution margin per unit $27.00 $20.00 Machine hours needed per unit 3 hours 2 hours The company has...

Lucas Inc. currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unit Direct materials $10 Direct labour 8 Variable manufacturing overhead 12 Fixed...

olive corp currently makes 20,000 sub components a year in one of its factories. the unit costs produced are: Direct materials: $12, Direct labor: 8, Var. manufacturing overhead: 12, fixed manuf....

Quan Company currently makes 10,000 machinery parts a year. The cost per unit to produce a part is: Cost per unit Direct materials $17 Direct labor $11 Variable manufacturing overhead $15 Fixed...

DD Question 9 8.13 pts 9. Cotton Corp currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Per Unit Direct Materials $32.50 Direct Labor 13.00 Variable...

Answer all these questions with the right answer letter next to each question number 32-Cotton Corp. currently makes 9,800 subcomponents a year in one of its factories. The unit costs to produce are:...

Olive Corp. currently makes 12,600 subcomponents a year in one of its factories. The unit costs to produce are: Per unit Direct materials $ 22 Direct labor 19 Variable manufacturing overhead 17 Fixed...

Olive Corp. currently makes 11,700 subcomponents a year in one of its factories. The unit costs to produce are: Per unit Direct materials $ 29 Direct labor 22 Variable manufacturing overhead 19 Fixed...

here is a question Hard Core Corp currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unit Direct materials $32.50 Direct labor 13.00 Variable...

What are the major elements of a typical business plan?

Kuban Company acquired $ 3,500,000 face value, 8% bonds as an available- for- sale investment on January 1 of the current year when the market rate of interest was 10%. Inter-est is paid annually...

The risk of acquiring a syphilis infection from a single sexual contact with an infected partner is low. highly unlikely. high, estimated to be 5 0 % * 6 0 % . estimated to be less than 4 0 % .

An experimenter has run a Box-Behnken design and has obtained the results below, where the response variable is the viscosity of a polymer: (a) Fit the second-order model. (b) Perform the canonical...

The histogram shown is for number of calories in a sample of fast-food items. a. What is the bin width of the histogram? b. Would this graph be best described as unimodal or bimodal? c. Approximately...

The four-bar linkage of Prob. 5/86 is repeated here. If the angular velocity and angular acceleration of drive link OA are 10 rad/s and 5 rad/s 2 , respectively, both counterclockwise, determine the...

Find the transfer function, G(s) = 4 (s)/T(s), for the rotational system shown in Figure P2.23. O0) 26 N-m-s/rad N1 = 26 N4 = 120 N2 = 110 N3 = 23 2 N-m/rad FIGURE P2.23

Observations show that the side thrust, F, for a rough spinning ball in a fluid is a function of the ball diameter, D, the free-stream velocity, V 0 , the density, , the viscosity, , the roughness...

yolanda received a49,000 distribution from a qualified retirement plan on July 31,2024 which she deposited into a money market account on November 3,2024 she contributed 49,000 to a traditional IRA...

Vicki Thornton is the new controller for EduTechno Software, which develops and sells educational software. Shortly before the December 31 fiscal year- end, Phil Nelson, the company president, asks...

Akron Medical Supply has applied for a loan. First National Bank has requested a budgeted balance sheet at April 30 and a combined cash budget for April. As Akron Medical Supplys controller, you have...

Managerial accounting differs from financial accounting in several areas. Specify whether each of the following characteristics relates to managerial accounting or financial accounting. a. Main...

Harrell and Smith, Inc., 204 Ambulance Street, Anywhere, CA92345, is a corporation (EIN 57-1234567) formed on January 1, 2012. Information concerning the corporation and its two shareholders follows....

The director of marketing at Reeves Wholesale Products is studying monthly sales. Three independent variables were selected as estimators of sales: regional population, per capita income, and...

A sociologist claims that the success of students in college (measured by their GPA) is related to their familys income. For a sample of 20 students, the correlation coefficient is 0.40. Using the...