Maurice Tutor

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About Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 25 Jun 2018 My Price 5.00

Blanton Inc

Blanton In currently produces all the components for the products it makes and sells. The total costs of producing a component Component Y for one of its products are given below. The annual requirement of Component Y is 2,2000 Units Direct materials. 19,800 Direct labor 11,000 Variable manufacturing overhead 15,400 Fixed manufacturing overhead 13,200 An external supplier offers to sell the component to BlNrin Inc for 23.00 per unit After analysis it is found that is the company buys the component instead of producing it, all of its variable costs and 8,200 of its fixed costs will be eliminated. If Blanton Inc decides to buy the component instead of manufacturing it how will the decision affect the company It's net will increase by 8,200 It's net income will increase by 3,800 It's net income will increase by 4,400 It's net income will decrease by 3,800

Answers

Maurice Tutor
(5)
Status NEW Posted 25 Jun 2018 10:06 PM My Price 5.00

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