8.Samsung Electronics uses a standard part in the manufacture of several of its radios. The...
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Accounting
8.Samsung Electronics uses a standard part in the manufacture of several of its radios. The total cost of producing 30,000 parts is $90,000, which includes fixed costs of $33,000 and variable costs of $57,000. The company can buy the part from an outside supplier for $2.50 per unit, and avoid 20% of the fixed costs. If DC Electronics decides to outsource the production of the part, a) how will it impact operating income: increase or decrease b) by how much? Include calculations in your answers.
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