Figure 13-2. ColorPro uses part 87A in the production of color printers. Unit manufacturing costs for part 87A are:
ColorPro uses 100,000 units of 87A per year. Filbert Company has offered to sell ColorPro 100,000 units of 87A per year for $12. Fixed overhead is unavoidable.
-Refer to Figure 13-6. Should Autry process dac further?
A) No, income will be $1,500 lower.
B) No, income will be $5,000 lower.
C) Yes, income will be $1,500 higher.
D) Yes, income will be $5,000 higher.
E) It doesn't matter; income will be the same.

Question

Figure 13-2. ColorPro uses part 87A in the production of color printers. Unit manufacturing costs for part 87A are:
  ColorPro uses 100,000 units of 87A per year. Filbert Company has offered to sell ColorPro 100,000 units of 87A per year for $12. Fixed overhead is unavoidable.
-Refer to Figure 13-6. Should Autry process dac further?
A) No, income will be $1,500 lower. 
B) No, income will be $5,000 lower. 
C) Yes, income will be $1,500 higher. 
D) Yes, income will be $5,000 higher. 
E) It doesn't matter; income will be the same.

Quizplus · Accepted Answer

The Answer of Figure 13-2. ColorPro uses part 87A in the production of color printers. Unit manufacturing costs for part 87A are:
  ColorPro uses 100,000 units of 87A per year. Filbert Company has offered to sell ColorPro 100,000 units of 87A per year for $12. Fixed overhead is unavoidable.
-Refer to Figure 13-6. Should Autry process dac further?
A) No, income will be $1,500 lower. 
B) No, income will be $5,000 lower. 
C) Yes, income will be $1,500 higher. 
D) Yes, income will be $5,000 higher. 
E) It doesn't matter; income will be the same.