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DC Electronics uses a standard part in the manufacture of several of its radios. The cost of producing 30.000 parts is $90,000, which includes fred

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DC Electronics uses a standard part in the manufacture of several of its radios. The cost of producing 30.000 parts is $90,000, which includes fred costs of $33,000 and variable costs of 57.000 The company can buy the part from an outside supplier for $250 perunt 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 earn profit of $11,600 DC outsources, what will the effect on operating income be? Up $15.000 Down 313 300 Down $24.900 Up $3,400

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