QUESTION 40 Geostuit, he currently makes 10,000 subcomponents a year in one of its factories....
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QUESTION 40 Geostuit, he currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unit 32 .5 Direct materials $ 0 13 Direct labor .0 0 19 Variable manufacturing overhead .5 0 26 Fixed manufacturing overhead .0 0 91 .0 $ 0 Total unit cost An outside supplier has offered to provide Goodwin, Inc. with the 10,000 subcomponents at an $84.50 per unit price. Fixed overhead is not avoidable. If Goodwin, Ine. rejects the outside offer, what will be the effect on short-term profits? O $195,000 decrease o no change o $260,000 increase $65,000 increase QUESTION 41
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