Question: Wild West Co. currently makes 8,000 subcomponents a year. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead
Wild West Co. currently makes 8,000 subcomponents a year. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Total unit cost Per unit $26.00 30.00 15.00 12.00 $83.00 An outside supplier has offered to provide Wild West with the 8,000 subcomponents at an $85.00 per unit price. Fixed overhead isn't avoidable. If Wild West accepts the outside offer, what will be the effect on short-term profits? Multiple Choice $96,000 increase $112.000 decrease 556.800 increase no change
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