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Walsh Automobile Company fabricates automobiles. Each vehicle includes one airflow sensor , which is currently made in - house. Details of the airflow sensor fabrication
Walsh Automobile Company fabricates automobiles. Each vehicle includes one airflow sensor which is currently made in house. Details of the airflow sensor fabrication are as follows:
tableVolumeunits per monthVariable cost per unit,$per unitFixed costs,$per month
A Japanese factory has offered to supply Walsh with readymade units for a cost of $ per sensor Assume that Walsh's fixed costs could be reduced by $ if it outsources and that Walsh will not be able to use the excess capacity in any profitable manner. If Walsh decides to outsource, monthly operating income will:
A decrease by $
B increase by $
C increase by $
D decrease by $
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