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jok3333 [9.3K]
3 years ago
15

The required volume of output to produce the motors will not require any incremental fixed overhead. Incremental variable overhe

ad cost is $21 per motor. What is the effect on income if Derby decides to make the motors
Business
1 answer:
Ludmilka [50]3 years ago
3 0

Answer: Income will increase by $16 per unit

Explanation:

Your question isn't complete but the completed question was gotten online and would be used in answering the question accordingly.

The effect on income if Derby decides to make the motors will be calculated thus:

In-house:

Direct material = 38

Direct labor = 50

Overhead (Incremental) = 21

Total variable cost = 109

Outside:

Cost of supply = 125

Therefore, the income per unit will increase by (125 - 109) = 16.

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Specific statements detailing what the organization intends to accomplish over a short period of time are call
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3 years ago
If the contribution margin is not sufficient to cover fixed expenses: a. total profit equals total expenses. b. a net operating
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Option b. a net operating loss occurs.

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3 years ago
Jaune Magazine (JM) must decide whether or not to publish a tell-all story about a celebrity. If the story ends up having major
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If a human resources manager estimates the probability that a certain percentage of employees will take advantage of a proposed
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