Question
arvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 60000parts is $ 140000,which includes fixed costs
arvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 60000parts is $ 140000,which includes fixed costs of $ 50000and variable costs of $ 90000. The company can buy the part from an outside supplier for $ 3.3perunit, and avoid30% of the fixed costs.If Harvey Automobiles makes thepart, how much will its operating incomebe?
A. $ 163,000 greater than if the company bought the part B.$163,000 less than if the company bought the part C.$93,000less than if the company bought the part D.93,000 greater than if the company bought the part
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started