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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 $141,000, which
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 42.000 parts is $141,000, which includes fixed costs of $73,000 and variable costs of $68,000. The company can buy the part from an outside supplier for $3.70 per unit, and avoid 30% of the fixed costs. If Blue Ridge Bicycles makes the part, how much will its operating income be? OA. $94,900 greater than if the company bought the part OB. $65,500 less than if the company bought the part Oc. $65,500 greater than if the company bought the part OD. $94,900 less than if the company bought the part
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