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Sutton Inc If Sutton Inc

question 211

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Sutton Inc. can produce 100 units of a component part with the following costs:  Direct Materials $130,000 Direct Labor 103,000 Variable Overhead 82,000 Fixed Overhead 62,000\begin{array} { l r } \text { Direct Materials } & \$ 130,000 \\\text { Direct Labor } & 103,000 \\\text { Variable Overhead } & 82,000 \\\text { Fixed Overhead } & 62,000\end{array} If Sutton Inc. can purchase the units externally for $300000 by what amount will its total costs change?


Definitions:

Radar Images

Images created using radio waves to map surfaces, contours, and features of objects, including weather patterns and geographical formations.

Heavily Cratered

Describes a surface, usually of a planet or moon, that has a large number of impact craters due to collisions with meteoroids, asteroids, or comets.

Little to No Atmosphere

Describes celestial bodies or locations that lack a significant atmospheric layer or have a very thin one.

Lunar Highlands

High elevations on the Moon that contain a light-colored, heavily cratered material; syn. cratered highlands.

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