Seashore Industries can manufacture 2,000 units of a necessary component part with the following costs: Direct Materials $80,000 Direct Labour 20,000 Variable Manufacture Overhead 50,000 Fixed Manufacture Overhead 50,000 If Seashore can purchase it at $90 each externally, it can avoid $10,000 of the fixed manufacture overhead and generate $15,000 additional incomes. If Seashore would choose to buy instead of make, what is the incremental income or loss? Select one: a. $5,000 profit O b. $20,000 c. $4,000 loss O d. $5,000 loss

Seashore Industries can manufacture 2,000 units of a necessary component part with the following costs: Direct Materials $80,000 Direct Labour 20,000 Variable Manufacture Overhead 50,000 Fixed Manufacture Overhead 50,000 If Seashore can purchase it at $90 each externally, it can avoid $10,000 of the fixed manufacture overhead and generate $15,000 additional incomes. If Seashore would choose to buy instead of make, what is the incremental income or loss? Select one: a. $5,000 profit O b. $20,000 c. $4,000 loss O d. $5,000 loss

Name: Seashore Industries can manufacture 2,000 units of a necessary compon
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Description: Seashore Industries can manufacture 2,000 units of a necessary component part with the following Costs:Direct Materials$80,000Direct Labour20,000Variable Manufacture Overhead50,000Fixed Manufacture Overhead50,000If Seashore can purchase it at $90 ea

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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