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Trey's Trucks uses a standard part in the manufacture of several of its trucks. The cost of producing 90,000 parts is $130,000, which includes fixed
Trey's Trucks uses a standard part in the manufacture of several of its trucks. The cost of producing 90,000 parts is $130,000, which includes fixed costs of $60,000 and variable costs of $70,000. 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 product that can be sold for $16,000 profit. If the company makes the part what will its operating income bo? O A. $193,000 greater than if the company bought the part B. $323.000 greater than if the company bought the part C. $193,000 less than if the company bought the part D. $58,000 greater than if the company bought the part
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