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Trey's Trucks uses a standard part in the manufacture of several of its trucks. The cost of producing 40,000 parts is $170,000, which includes fixed
Trey's Trucks uses a standard part in the manufacture of several of its trucks. The cost of producing 40,000 parts is $170,000, which includes fixed costs of $90,000 and variable costs of $80,000. The company can buy the part from an outside supplier for $3.40 per unit and avoid 30% of the fixed costs. If the company makes the part, how much will its operating income be? ... O A. $73,000 greater than if the company bought the part O B. $73,000 less than if the company bought the part OC. $29,000 greater than if the company bought the part OD. $29,000 less than if the company bought the part
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