Widget A is used in one of Turveys Toys products. The companys Accounting Department reports the following costs of producing the units of the part that are needed every year.
Per Unit
Direct Materials
$
Direct Labor
$
Variable Manufacturing Overhead
$
Supervisor's Salary
$
Depreciation of Equipment
$
Allocated General Overhead
$
An outside supplier has offered to make the part and sell it to the company for $ each. If this offer is accepted, the supervisors salary, all of the variable costs, all direct labor costs, and all direct materials costs will no longer be incurred. The special equipment used to make the part was purchased many years ago and has no salvage value or other use and the company will continue to depreciate it even if it buys Widget A The allocated general overhead represents fixed costs of the entire company and will continue to be incurred, even if the company buys the part.
By how much would net income CHANGE IN TOTAL if the company bought Widget A
Do not give the answer on a perunit basis
Round your answer to the nearest dollar
If net income would decrease, use a negative sign to indicate a decrease.