XYZ Company makes 650 widgets. The variable costs are $33.60 per unit and fixed costs...

80.2K

Verified Solution

Question

Accounting

image

XYZ Company makes 650 widgets. The variable costs are $33.60 per unit and fixed costs are $28.00 per unit; however, $19.40 in fixed costs per unit is unavoidable. What is the effect on net income if the company instead buys the widgets from an outside supplier for $39.00 per unit? Increase of $2,080 Increase of $14,690 Decrease of $14,690 Decrease of $2,080

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students