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Greenpark Skateboards uses a standard part in the manufacture of several of its skateboards. The cost of producing 40,000 parts is $138,000, which includes fixed
Greenpark Skateboards uses a standard part in the manufacture of several of its skateboards. The cost of producing 40,000 parts is $138,000, which includes fixed costs of $69,000 and variable costs of $69,000. The company can buy the part from an outside supplier for $4.00 per unit, and avoid 30% of the fixed costs. If the company makes the part, how much will its operating income be? OA. $89,700 less than if the company bought the part OB. $70,300 less than if the company bought the part O C. $89,700 greater than if the company bought the part OD. $70,300 greater than if the company bought the part
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