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Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 4 0 , 0 0 0
Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing parts is $ which includes fixed costs of $ and variable costs of $ The company can buy the part from an outside supplier for $ per unit and avoid of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $ If Voltaic outsources, what will be the effect on operating income?
A increase of $
B increase of $
C decrease of $
D decrease of $
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