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K Greenpark Skateboards uses a standard part in the manufacture of several of its skateboards. The cost of producing 44,000 parts is $143,000, which includes
K Greenpark Skateboards uses a standard part in the manufacture of several of its skateboards. The cost of producing 44,000 parts is $143,000, which includes fixed costs of $73,000 and variable costs of $70,000. The company can buy the part from an outside supplier for $3.80 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 $17,000 profit. If the company makes the part, what will its operating income be? OA. $58,300 greater than if the company bought the part O B. $58,300 less than if the company bought the part OC. $201,300 greater than if the company bought the part O D. $92,300 greater than if the company bought the part
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