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Exhibit 22-2 JD Smith Company Is Operating at Less Than

Question 69

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Exhibit 22-2 JD Smith Company is operating at less than full capacity. The production manager is considering using this excess capacity to make a part that he usually buys. The full costs of manufacturing the part are as follows:
Exhibit 22-2 JD Smith Company is operating at less than full capacity. The production manager is considering using this excess capacity to make a part that he usually buys. The full costs of manufacturing the part are as follows: Up to now, the company has been buying 3,000 units of the part for a total of $115,000. Refer to Exhibit 22-2. If JD Smith decided to make this product, its profit would: A) Decrease $5,000 B) Decrease $23,000 C) Increase $5,000 D) Increase $23,000 Up to now, the company has been buying 3,000 units of the part for a total of $115,000.
Refer to Exhibit 22-2. If JD Smith decided to make this product, its profit would:


A) Decrease $5,000
B) Decrease $23,000
C) Increase $5,000
D) Increase $23,000

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