her Harvey Automobiles uses a standard part in the manufacture of several of its trucks...
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her Harvey Automobiles uses a standard part in the manufacture of several of its trucks The cost of producing 80,000 parts is $170,000, which includes fixed costs of $40,000 and vanable costs of $130,000. The company can buy the part from an outside supplier for $3 20 per unit, and avoid 30% of the fixed costs. How nge 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 $16,000 profit. If Harvey Automobiles makes the part what will its operating income be? O A. $98,000 less than if the company bought the part OB. $44,000 greater than if the company bought the part Oc. $98,000 greater than if the company bought the part O D. $268,000 greater than if the company bought the part 5) D TES nge -T 1.con of th all De e Rel
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