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Zarrin [17]
3 years ago
8

Damon Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows:

Business
1 answer:
Shkiper50 [21]3 years ago
8 0

Answer:

d. a $10,000 decrease.

Explanation:

The computation of the impact on the income is given below:

In case of making the product

= Direct material + direct labor + variable manufacturing overhead  + rented

= $100,000 + $160,000 + $60,000 + $10,000

= $330,000

And, in case of buying the product

= 20,000 × $17

= $340,000

So there is a decrease of $10,000

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