1. A company sells 2 types of machines. It can manufacture a part needed to make its machines. A subcontractor could provide this part for $35. You are given the following information about the cost of manufacturing one unit of this part:

Assume that by purchasing this part, the company can lease the cleared manufacturing space at $180,000. If 10,000 units of this part are manufactured, the firm: a)Gains $10,000 b)Loses $10,000 c)Gains $30,000 d)Loses $30,000 e)No answer is appropriate

par year per unit 10 000 units 10 100 raw variable (units) $ 000 3 300 direct labor (variable) units $ 000 3 300 indirect manufacturing costs variable per unit $ 000 N 200 fixed indirect manufacturing costs (common distributed) $ 000