help please answer in text form with proper workings and explanation , for each and every part, entry and steps with concept and introduction no AI no copy paste Sheridan Industries must decide whether to make-or-buy some of its components. The costs of producing 161000 battery packs for itsproduct are as follows:Direct Materials$13800Direct Labor$4600Variable overhead$5520Fixed overhead$8280The company has an opportunity to purchase the battery packs for $0.18 per unit, which would eliminate all variable costs, and $1840of fixed costs. Based on your analysis, what is the net income increase or decrease if the company purchases the battery packs?○ An increase in net income of $3220.○ A decrease in net income of $3220.○ An increase in net income of $6440.O An increase in net income of $5060.

Step 1: Introduction to cost accountingThe field of accounting known as cost accounting is utilized…

Answered: Sheridan Industries must decide whether…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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