$\begin{array}{lr}
\text { Direct materials } & \$ 0.40 \
\text { Direct labour } & 0.15 \
\text { Variable overhead } & 0.06 \
\text { Fixed overhead* } & 0.50
\end{array}$
-Refer to the Figure. A. Based on the cost figures, if Rudder purchases metallic ink from the outside supplier, will operating income be higher or lower, and by how much?
B. What is the highest price per millilitre that Rudder would pay an outside supplier for the ink?

Question

Quizplus · Accepted Answer

The Answer of $\begin{array}{lr}
\text { Direct materials } & \$ 0.40 \
\text { Direct labour } & 0.15 \
\text { Variable overhead } & 0.06 \
\text { Fixed overhead* } & 0.50
\end{array}$
-Refer to the Figure. A. Based on the cost figures, if Rudder purchases metallic ink from the outside supplier, will operating income be higher or lower, and by how much?
B. What is the highest price per millilitre that Rudder would pay an outside supplier for the ink?