Answered

Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Get immediate and reliable answers to your questions from a community of experienced experts on our platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

Bramble Corp. incurs the following costs to produce 9900 units of a subcomponent: Direct materials$8316 Direct labor11187 Variable overhead12474 Fixed overhead16200 An outside supplier has offered to sell Bramble the subcomponent for $2.85 a unit. If Bramble accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be

Sagot :

ayokenny2001

Answer:

$3,762

Explanation:

The computation is as seen below

Total cost when the production is 9,900 units

Direct materials $8,316

Direct labor $11,187

Variable overhead $12,474

Total $31,977

But,

Their new cost on supplier offer is

= $2.85 × 9,900 units

= $28,215

In the case when the order is accepted, the net income would increase by

= $31,977 - $28,215

= $3,762

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.