Question: Nine Corp currently makes 2,000 subcomponents a year in one of its factories. The unit costs to produce are: Description Per unit Direct materials $4

Nine Corp currently makes 2,000 subcomponents a year in one of its factories. The unit costs to produce are:

Description

Per unit

Direct materials

$4

Direct labor

4

Variable manufacturing overhead

2

Fixed manufacturing overhead

3

An outside supplier has offered to provide Nine Corp. with the 2,000 subcomponents at a $19 per unit price. Fixed overhead is not avoidable. If Nine 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

(please show how you got the answer steps, that way I can use it to answer other questions, please and thanks!)

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