17. Benjamin Franklin – The Autobiography Key Quotation:“I i…

17. Benjamin Franklin – The Autobiography Key Quotation:“I included Temperance first, because it tends to procure that coolness and clearness of head, which is so necessary where constant vigilance was to be kept up.” However, why did he write this list and which virtue plagued him most and why?

Karen Company manufactures 5,000 high-end racing bicycles ea…

Karen Company manufactures 5,000 high-end racing bicycles each period.  Karen Company has been making all the components for the bikes, but a supplier has approached Karen Company with an offer to sell her bicycle seats at a price of $40.  The current cost per unit of manufacturing one bicycle seat is computed as follows: Direct Material                              $10 (variable) Direct Labor                                     $18 (variable) Manufacturing overhead          $10  (100% Fixed) If the 5,000 bicycle seats are purchased from the outside supplier, $1 per unit of the fixed manufacturing overhead costs can be avoided. If Karen Company purchases the seats, the facility used to manufacture the seats would be rented for $20,000 per period.  All of the Direct Material and Direct Labor are variable.   If Karen Company chooses to purchase the bicycle seats, then the change in annual net operating income is: