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Hungry Bites produces corn chips. The cost of one batch is below: Direct materials $18; Direct labor 13.00; Variable overhead; 11.00; and Fixed overhead 14.00. An outside supplier has offered to produce the corn chips for $25 per batch. How much will Hungry Bites save if it accepts the offer?
a) $2.00 per batch
b) $17.00 per batch
c) $31.00 per batch
d) $6.00 per batch
Dave Ganz started a sole proprietorship by depositing $30,000 cash in a business checking account. During the accounting period the business earned $6,000 of net income and Ganz withdrew $2,000 cash from the business.
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