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Question Help Use the information below to answer the following question(s): Compact Appliances uses a standard part in the manufacture of several of its air
Question Help Use the information below to answer the following question(s): Compact Appliances uses a standard part in the manufacture of several of its air conditioners. The cost of producing 40.000 parts is $110,000, which includes fixed costs of $50,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $4.00 per unit, and avoid 40% of the fixed costs If Compact Appliances buys the part, what is the most Compact Appliances can spend per unit so that operating income equals the operating income from making the part? A. $1.50 OB. $1.60 Oc. $3.50 OD. $2.00
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