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thumbs up for a clear cut answer Trey's Trucks uses a standard part in the manufacture of several of its trucks. The cost of producing
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Trey's Trucks uses a standard part in the manufacture of several of its trucks. The cost of producing 50,000 parts is $160,000, which includes fixed costs of $70,000 and varable costs of $90,000 The company can buy the part from an outside supplier for $3.30 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 profuct that can be sold for $16,000 proft. If the company malies the par what will its operating income be? A. $65,000 greater than if the company bought the part B. $38,000 less than if the company bought the part C. $198,000 greater than if the company bought the part D. $38,000 greater than if the company bought the part Step by Step Solution
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