What is the effect on income

Reference no: EM13263322

The required volume of output to produce the motors will not require any incremental fixed overhead. Incremental variable overhead cost is $27.2 per motor. What is the effect on income if Paz decides to make the motors?

Income will decrease by $10.4 per unit.
Income will increase by $10.4 per unit.
Income will increase by $24.0 per unit.
Income will decrease by $24.0 per unit.
Income will increase by $16.8 per unit.

Reference no: EM13263322

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