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SawTooth Company uses a standard part in the manufacture of several of its saws. The cost of producing 60,000 parts is $140,000, which includes

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SawTooth Company uses a standard part in the manufacture of several of its saws. The cost of producing 60,000 parts is $140,000, which includes fixed costs of $60,000 and variable costs of $80,000. The company can buy the part from an outside supplier for $3.20 per unit and avoid 30% of the foxed costs If the company makes the part, how much will its operating income be?

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