# SVE & EXT SLATE Damon Industries manufactures 30,000 components per year. The manufacturing costs of the...

###### Question:

SVE & EXT SLATE Damon Industries manufactures 30,000 components per year. The manufacturing costs of the components was determined as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $150,000 170,000 70,000 90,099 Jon - not a Skype An outside supplier has offered to sell the component for$14. If Damon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $11.000. If Damon purchases the component from the supplier instead of manufacturing it, the effect on operating profits would be a Multiple Choice O$41.000 increase O $29.000 incente 0$49.000 decente \$8.000

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