Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

will uovote
image text in transcribed
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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Teams Dynamics And Efficiency

Authors: Mara Cameran, Angelo Ditillo, Angela Pettinicchio

1st Edition

1032097000, 9781032097008

More Books

Students also viewed these Accounting questions

Question

What is Blume's formula? When would you want to use it in practice?

Answered: 1 week ago

Question

List the common methods used in selecting human resources. page 254

Answered: 1 week ago