What is the net increase in the net income


Billings company has the following costs when producing 100,000 units:

variable costs $800,000
Fixed costs $1,200,000

An outside supplier has offered to make the item at $6 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $220,000. What is the net increase (decrease) in the net income of accepting the suppliers offer?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What is the net increase in the net income
Reference No:- TGS0716621

Expected delivery within 24 Hours