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Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 80,000 parts is $130,000, which includes fixed

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Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 80,000 parts is $130,000, which includes fixed costs of $70,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $3.10 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 Harvey Automobiles makes the part, what will its operating income be? O A $65.000 greater than in the company bought the part OB $151,000 greater than if the company bought the part OC. $281.000 greater than if the company bought the part OD. $151.000 less than if the company bought the part Click to select your answer 12 15 AM 1/1/2020 E Type here to search

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