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.

reference: ref 7-2

if clemente accepts the offer, by how much will net income increase (decrease)?

select one:

a. $3,750

b. $19,950

c. $(8,850)

d. $(2,850)

Neon light company of kansas city ships lamps and lighting appliances throughout the country. ms. neon has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by one and one-half days. furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without affecting suppliers. the bank has a remote disbursement center in florida. a. if neon light company has $2.90 million per day in collections and $1.18 million per day in disbursements, how many dollars will the cash management system free up?

Any point on a country's production possibilities frontier represents a combination of two goods that an economy:

Suppose that a firm is considering moving from a batch process to an assembly-line process to better meet evolving market needs. what concerns might the following functions have about this proposed process change: marketing, finance, human resources, accounting, and information systems?