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Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 42,000 parts is $140,000, which includes
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 42,000 parts is $140,000, which includes fixed costs of $68,000 and variable costs of $72,000. The company can buy the part from an outside supplier for$350 per unit and a d 30%, of h xed cos s. 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 $15,000 profit. If Blue Ridge Bicycles makes the part, what will its operating income be? O A. O B. C. O D. $179,600 greater than if the company bought the part $69,600 greater than if the company bought the part $39,600 less than if the company bought the part $39,600 greater than if the company bought the part
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