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Shoshiro Company has the following costs when producing 100,000 units: ...
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Shoshiro Company has the following costs when producing 100,000 units:
Variable costs
|
$600,000
|
Fixed costs
|
$900,000
|
An outside supplier has offered to make the item at $4.50 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $165,000. The net increase (decrease) in the net income of accepting the supplier's offer is:
0%
0%
100%
0%