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please give detailed steps how to find solution, I am studying for my Final exam. thank you! Troy's Trucks uses a standard part in the
please give detailed steps how to find solution, I am studying for my Final exam. thank you!
Troy's Trucks uses a standard part in the manutacture of several of its trucks. The cost of producing 50,000 parts is $130,000, which includes fixed costs of $40,000 and variabie costs of $90,000. The company can buy the part from an outside supplier for $3.20 per unit and avoid 30% of the foced costs. If the company makes the part, how much will its operating income be? A. $132,000 less than if the company bought the part a. $132,000 greater than if the company bought the part C. $58,000 less than it the company bought the part D. $58,000 greater than if the company bought the part Troy's Trucks uses a standard part in the manutacture of several of its trucks. The cost of producing 50,000 parts is $130,000, which includes fixed costs of $40,000 and variabie costs of $90,000. The company can buy the part from an outside supplier for $3.20 per unit and avoid 30% of the foced costs. If the company makes the part, how much will its operating income be? A. $132,000 less than if the company bought the part a. $132,000 greater than if the company bought the part C. $58,000 less than it the company bought the part D. $58,000 greater than if the company bought the part Step by Step Solution
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