Swifty Corporation incurs the following costs to produce 9900 units of a subcomponent:
1. Direct materials $8316
2. Direct labor 11187
3. Variable overhead 12474
4. Fixed overhead 16200
An outside supplier has offered to sell Swifty the subcomponent for $2.85 a unit.
If Swifty could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by
+4
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Home » Business » Swifty Corporation incurs the following costs to produce 9900 units of a subcomponent: 1. Direct materials $8316 2. Direct labor 11187 3. Variable overhead 12474 4.