question archive Incremental Analysis 7-17 76

Incremental Analysis 7-17 76

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Incremental Analysis 7-17 76. Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent: Direct materials $8,400 Direct labor 11.250 Variable overhead 12,600 Fixed overhead 16.200 An outside supplier has offered to sell Clemente the subcomponent for $2.85 a unit. If Clemente accepts the offer, by how much will net income increase (decrease)? a. $3.750 b. $19.950 c. $(8.850) d. $(2.850) TO mm

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