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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 $140,000, which includes
Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 43,000 parts is $140,000, which includes fixed costs of 560,000 and variable costs of $71,000 The company can buy the part from an outside Supplier for $3 60 per unit and avoid 30% of the fixed 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 $15,000 prolif Blue Ridge Bicycles makes the part, what will its operating income be? O A 548, 100 less than if the company bought the part O B. $48,100 greater than the company bought the part O C. $188,100 greater than if the company bought the part OD. $78,100 greater than if the company bought the part Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 43,000 parts is $140,000, which includes fixed costs of $69,000 and variable costs of $71,000. The company can buy the part from an outside supplier for $3.60 per unit, and avoid 30% of the fixed 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 $15,000 profit. If Blue Ridge Bicycles makes the part what will its operating income be? O A. $48, 100 less than if the company bought the part O B. $48, 100 greater than if the company bought the part O C. $188,100 greater than if the company bought the part OD. $78,100 greater than if the company bought the part
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