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Cuyahoga Valley Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 41,000 parts is $140,000, which includes

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Cuyahoga Valley Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 41,000 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 $3.5 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 $16,000 profit. If Cuyahoga Valley Bicycles makes part, what will its operating income be? A $35, 100 less than if the company bought the part B. $67, 100 greater than if the company bought the part C. $35, 100 greater than if the company bought the part D $175, 100 greater than if the company bought the part

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