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Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 43,000 parts is $142,000, which includes

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Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 43,000 parts is $142,000, which includes fixed costs of $68,000 and variable costs of $74,000. The company can buy the part from an outside supplier for $3.60 per unit, and avoid 30% of the fixed costs. ource Assume that factory space freed up by purchasing the part from an outside sou can be used to manufacture another product that can be sold for $14,000 profit. If Blue Ridge Bicycles makes the part, what will its operating income be? $46,400 greater than if the company bought the part $188,400 greater than if the company bought the part $46,400 less than if the company bought the part $74,400 greater than if the company bought the part

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