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Voltaic Electronics uses a standard part in the manulacture of ditherent types of radios. The total cost of producing 33,000 parts is $100,000, which includes

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Voltaic Electronics uses a standard part in the manulacture of ditherent types of radios. The total cost of producing 33,000 parts is $100,000, which includes fived costs of $40 ovo and variatile conts of 560,000 . The company can buy the part trom an outside suppler for $2 per unit and avoid 30% of the fixed costs. Assume that the company can use the freed manulactuning space to mate another product that can eam a profit of $15,000. If Voltaic cutsources. What will be the offect on operating income? A. decrease of 512,000 B. incresse of $15,000 C. decrease of $21,000 D. increase of 321.000 Which of the following is true of the sales budget? A. It provides sales data that is used to prepare financial statements for external reporting purposes. B. It captures the variable and fixed expenses of the business. C. It is used in the production budget. D. It shows the cost of expected production in a period

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