Oriole Chemical Corporation produces an oil-based chemical product which it sells to paint manufacturers. In...
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Oriole Chemical Corporation produces an oilbased chemical product which it sells to paint manufacturers. In the company incurred $ of costs to produce gallons of the chemical. The selling price of the chemical is $ per gallon. The costs per unit to manufacture a gallon of the chemical are presented below:Direct materials$Direct laborVariable manufacturing overheadFixed manufacturing overheadTotal manufacturing costs$The company is considering manufacturing the paint itself. If the company processes the chemical further and manufactures the paint itself, the following additional costs per gallon will be incurred: Direct materials $ Direct labor $ Variable manufacturing overhead $ No increase in fixed manufacturing overhead is expected. The company can sell the paint at $ per gallon.Determine the incremental per gallon increase in net income and the total increase in net income if the company manufactures the paint. Round net income per unit value to decimal places, eg
Oriole Chemical Corporation produces an oilbased chemical product which it sells to paint manufacturers. In the company incurred $ of costs to produce gallons of the chemical. The selling price of the chemical is $ per gallon. The costs per unit to manufacture a gallon of the chemical are presented below:Direct materials$Direct laborVariable manufacturing overheadFixed manufacturing overheadTotal manufacturing costs$The company is considering manufacturing the paint itself. If the company processes the chemical further and manufactures the paint itself, the following additional costs per gallon will be incurred: Direct materials $ Direct labor $ Variable manufacturing overhead $ No increase in fixed manufacturing overhead is expected. The company can sell the paint at $ per gallon.Determine the incremental per gallon increase in net income and the total increase in net income if the company manufactures the paint. Round net income per unit value to decimal places, eg
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