Question 7 4 pts Hungry Like the Wolf, Inc. currently makes 1,000 subcomponents a year in one of its factories. The production costs per unit are provided below: Per Unit Direct Materials $25 Direct Labor $10 $15 Variable Manufacturing Overhead Fixed Manufacturing Overhead $20 Total Unit Cost $70 Fixed Manufacturing Overhead would not be avoidable. An outside supplier has offered to provide Hungry Like the Wolf, Inc. the 1,000 subcomponents for $65 per unit. Which of the following statements would be true? ent from the Fixed Manufacturing Overhead $20 Total Unit Cost $70 Fixed Manufacturing Overhead would not be avoidable. An outside supplier has offered to provide Hungry Like the Wolf, Inc. the 1,000 subcomponents for $65 per unit. Which of the following statements would be true? Hungry Like the Wolf, Inc. should purchase the subcomponents from the supplier Purchasing from the outside supplier would increase income by $15,000. Purchasing the components from the supplier would cost the same as making them. Purchasing from the outside supplier would decrease income by $15,000. - Previous Next