Business, 24.03.2020 18:08, daijahamaker062816

CM Company manufactures a component used in the production of one of its main products. The following cost information is available: Direct materials $410 Direct labor (variable) 100 Variable manufacturing OH 90 Fixed manufacturing OH 35 A supplier has offered to sell the component to CM for $630 per unit. If CM buys the component from the supplier, the released facilities can be used to manufacture a product that would generate a contribution margin of $30,000 annually. Assuming that CM needs 4,000 components annually and that the fixed manufacturing overhead is unavoidable, what would be the impact on operating income if CM outsources

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CM Company manufactures a component used in the production of one of its main products. The followin...