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Trey's Trucks uses a standard part in the manufacture of several of its trucks. The cost of producing 70,000 parts is $140,000, which includes
Trey's Trucks uses a standard part in the manufacture of several of its trucks. The cost of producing 70,000 parts is $140,000, which includes fixed costs of $80,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $3.00 per unit and avoid 30% of the fixed costs. If the company makes the part, how much will its operating income be? OA. $126.000 greater than if the company bought the part OB. $154,000 greater than if the company bought the part OC. $126,000 less than if the company bought the part OD. $154,000 less than if the company bought the part
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