CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN Multiple Choice Question 76 e * You

Question

CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN Multiple Choice Question 76 e * Your answer is incorrect. Try again. Bramble Corp. incurs the following costs to produce 8800 units of a subcomponent: ce Direct materials Direct labor Variable overhead Fixed overhead $7392 9944 11088 16200 5 by An outside supplier has offered to sell Bramble the subcomponent for $2.85 a unit. If Bramble accepts the offer, by how much will net income increase (decrease)? O. $3344 O $19544 O $(7744) O $(2552) LINK TO TEXT Question Attempts: 1 of ulilu & Sons, Inc.

Explanation / Answer

76) Differential analysis:

Make relevant cost = 7392+11088+9944 = 28424

Purchase cost = 8800*2.85 = 25080

Net operating income increase by (25080-28424) = 3344

so answer is a) $3344

125) Additional profit = (168000-120000-27300) = 20700

so answer is a) $20700

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