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37. Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 90,000 parts is $120,000, which includes

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37. Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 90,000 parts is $120,000, which includes fixed costs of $40,000 and variable costs of $80.000 The company can buy the part from an outside supplier for $3.30 per unit, and avoid 30% of the fixed costs.If Harvey Automobiles makes the part, how much will its operating income be? A.$269,000 greater than if the company bought the part B. $269,000 less than if the company bought the part C.$205,000 greater than if the company bought the part D.$205,000 less than if the company bought the part 38. Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 50,000 parts is $170,000, which includes fixed costs of $80,000 and variable costs of $90,000. By outsourcing the part, the company can avoid 70% of the fixed costs. If Harvey Automobiles buys the part, what is the most Harvey Automobiles can spend per unit so that operating income equals the operating income from making the part? A.$3.88 B.$2.92 C.$3.40 D.$1.60

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