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will uovote Greenpark Skateboards uses a standard part in the manufacture of several of its skateboards. The cost of producing 45,000 parts is $143,000, which
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Greenpark Skateboards uses a standard part in the manufacture of several of its skateboards. The cost of producing 45,000 parts is $143,000, which includes fbed costs of $71,000 and variable costs of $72,000. The company can buy the part from an outside supplier for $3.70 per unit, and avoid 30% of the fred 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 $17,000 profit if the company makes the part, what will its operating income be? A. $90,200 greater than if the company bought the part B. $56,200 groater than it the company bought the part C. $6,200 less than if the company bought the part D. $199,200 greater than if the company bought the part Step by Step Solution
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