Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent:
Direct materials
$8,400
Direct labor
11,250
Variable overhead
12,600
Fixed overhead
16,200
An outside supplier has offered to sell Clemente the subcomponent for $2.85 a unit.
Reference: Ref 7-2
If Clemente accepts the offer, by how much will net income increase (decrease) ?
Select one:
a. $3,750
b. $19,950
c. $ (8,850)
d. $ (2,850)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent: Direct materials $8,400 Direct labor 11,250 Variable ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which of the following statements is true of resistance to change? Select one: A. Overt resistance is less important to an organization than is covert resistance. 0 B. Resistance has emotional, cognitive, and behavioral components. 0 C.
Answers (1)
Accounts receivable had a debit balance of $10,000 at the beginning of the period, and a debit balance of $6,000 at the end of the period.
Answers (1)
What is customer retention?
Answers (2)
A firm using the perpetual inventory method returned defective merchandise costing P2,000 to one of its suppliers. The entry to record this transaction will include a debit to a. Accounts Receivable. b. Inventory. c. Purchase Returns and Allowances.
Answers (1)
The term commonly used in accounting to describe the format for recording a transaction is: general ledger journal entry trial balance chart of accounts
Answers (2)
New Questions in Business
Which education level has the highest return on investment (ROI)
Answers (1)
Assume that the money demand function is (M / P) d = 2,200 - 200r, where r is the interest rate in percent. If the price level is fixed at P=2, and the Fed wants to fix the interest rate at 7 percent, it should set the money supply at:
Answers (1)
On August 2, 2013, Jun Co. receives a $6,000, 90-day, 12% note from customer Ryan Albany as payment on his $6,000 account. 1. Prepare the journal entry assuming the note is honored by the customer on October 31, 2013.
Answers (1)
Are schools officials immune from being sued?
Answers (1)
Assume an asset cost $72,800 and has a current book value of $42,760. The asset is sold today for $32,900 cash. The firm's tax rate is 21 percent. As a result of this sale, the firm's net cash flow: 1. will increase by more than $32,900. 2.
Answers (1)