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A company makes 1.200 parts each year that are used in one of its products The unit product cost of this part is Variable manufacturing

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A company makes 1.200 parts each year that are used in one of its products The unit product cost of this part is Variable manufacturing cost $ 9.30 Fixed manufacturing cost 3.60 Total unit product cost 12.90 The part can be purchased from an outside supplier for $9.20 per unit If the part is purchased from the outside supplier, two-thirds of the fixed manufacturing costs can be eliminated The effect on net operating income as a result of purchasing the parts from the outside supplier would be a $4,440 increase. $1,000 decrease. $3,000 increase. $5,000 decrease

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