Voltaic electronics uses a standard part in the manufacture of different types of radios. The total cost
Fantastic news! We've Found the answer you've been seeking!
Question:
Voltaic electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 36,000 parts in $110,000, which includes fixed costs of $50,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $1 per unit and avoid 30% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $16,000.if voltaic outsources, what will be the effect on operating income?
- Increases of $55,000
- Decrease of $55,000
- Decrease of $15,000
- Increase of $16,000
- Increase of $39,000
Related Book For
Elementary Statistics
ISBN: 978-0538733502
11th edition
Authors: Robert R. Johnson, Patricia J. Kuby
Posted Date: