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  3. please show all work thanks 3. massey, inc. can

please show all work thanks 3. Massey, Inc. can manufacture 1,200 units...

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Accounting

please show all work thanks image
3. Massey, Inc. can manufacture 1,200 units of a component part for direct materials cost, $56,000 and direct labor cost $28,000. Total (fixed and variable) factory overhead cost is $20,000. Estimated variable factory overhead cost is 60% of direct labor cost. Massey can purchase the 1,200 units externally from a Belgian company for $77 per unit plus an 8% import tariff (tax). Fixed costs will not affect the decision. Calculate the total decrease or increase in net income if Massey accepts the Belgian offer

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