Answer: ($60,000)
Explanation:
Fixed cost is a cost that doesn't vary alongside production level. It should be noted that the relevant cost for production will be addition of the direct materials to the direct labour and the variable maufacturing overhead. This will be:
= $60,000 + $80,000 + $100,000
= $240,000
The relevant costs that will be bought will be:
= 30,000 × $10
= $300,000
Therefore there'll be decrease in net income by:
= $300,000 - $240,000
= $60,000
The answer will be ($60,000)
