Taser industries must decide whether to make or buy some of its components. the costs of producing 175,000 battery packs for its product are as follows: direct materials $15,000 direct labor $5,000 variable overhead $6,000 fixed overhead $9,000 the company has an opportunity to purchase the battery packs for $0.18 per unit, which would eliminate all variable costs, and $2,000 of fixed costs. based on your analysis, what is the net income increase or decrease if the company purchases the battery packs? a decrease in net income of $3,500 an increase in net income of $5,500 an increase in net income of $7,000 an increase in net income of $3,500

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan