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edugen.wileypl nto I aquinas vs d Favorites Paradiso Poli.. Sakai @ PC: https: K

ID: 2546286 • Letter: E

Question

edugen.wileypl nto I aquinas vs d Favorites Paradiso Poli.. Sakai @ PC: https: Kimmel, Accounting, 6e Practice Assignment Gradebook ORION Downloadable eTextbook signment PM/Remaining: 20 min. ES Multiple Choice Question 76 1 Marigold Corp. incurs the following costs to produce 12200 units of a subcomponent Direct materials Direct labor Variable overhead Fixed overhead 12 $10248 13786 15372 16200 An outside supplier has offered to sell Marigold the subcomponent for $2.85 a unit If Marigold accepts the offer, by how much will net income increase (decrease)? $4636 $20836 $(10736) $(3538) Study Sons. Inc. All Rights Reserved. A Division of John Wiley &.Sons.Inc

Explanation / Answer

A. $4,636

Net income change = $10,248 + $13,786 + $15,372 - ($2.85 × 12,200) = $4,636