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Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 40,000 parts is $140,000, 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 40,000 parts is $140,000, which includes forced costs of $72.000 and variable costs of $60,000. The company can buy the part from an outside supplier for $4.00 per unit, and avoid 30% of the food costs Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $13.000 prof. Blue Ridge Bicycles makes the part what will its operating income be? O A $197,400 greater than the company bought the part OB. $83,400 greater than if the company bought the part OC. $57,400 greater than if the company bought the part OD. $57,400 less than if the company bought the part

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