Marigold Co. produces 5200 units of part Alpha-E for use in one its products. The...
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Marigold Co. produces 5200 units of part Alpha-E for use in one its products. The following costs are incurred at that level of production: If Marigold buys the part from an outside supplier, $44000 of the fixed overhead is avoidable. The outside supplier has offered to sell the units at $60 per unit. The increase (decrease) in net income from purchasing the part from the outside supplier would be $60000 decrease $21000 decrease $50000 increase $21000 increase
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