M&S Company incurs the following costs to produce 10,000 units of a subassembly part: Direct materials OMR 0.84 Direct labor 1.125 Variable overhead 1.26 Fixed overhead 1.62 An outside supplier has...

M&S Company incurs the following costs to produce 10,000 units of a subassembly part:<br>Direct materials<br>OMR 0.84<br>Direct labor<br>1.125<br>Variable overhead<br>1.26<br>Fixed overhead<br>1.62<br>An outside supplier has offered to sell M&S Company the subcomponent for OMR 2.85 a unit.<br>If M&S Company accepts the offer, by how much will net income increase (decrease)?<br>Select one:<br>a. OMR (8,850)<br>O b. OMR 3,750<br>Oc. OMR 19,950<br>d. None of the answers are correct<br>Oe. OMR (2,850)<br>

Extracted text: M&S Company incurs the following costs to produce 10,000 units of a subassembly part: Direct materials OMR 0.84 Direct labor 1.125 Variable overhead 1.26 Fixed overhead 1.62 An outside supplier has offered to sell M&S Company the subcomponent for OMR 2.85 a unit. If M&S Company accepts the offer, by how much will net income increase (decrease)? Select one: a. OMR (8,850) O b. OMR 3,750 Oc. OMR 19,950 d. None of the answers are correct Oe. OMR (2,850)

Jun 11, 2022

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M&S Company incurs the following costs to produce 10,000 units of a subassembly part: Direct materials OMR 0.84 Direct labor 1.125 Variable overhead 1.26 Fixed overhead 1.62 An outside supplier has...

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