Business, 06.04.2021 01:50, BARRION1981

You make component X in-house at a cost of $16 per unit, which consists of $2 direct labor per unit, $7 direct materials per unit, $6 fixed overhead per unit, and $1 variable overhead per unit. You need 1,000 units of X per month. An outside supplier has offered to sell component X to you at $12 per unit. If you outsource the production of X to the supplier, how much will your profit change in the short term

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You make component X in-house at a cost of $16 per unit, which consists of $2 direct labor per unit,...