Question: Answer the following question(s] using the information below Mable's Engine Company manufactures part 292 used in several of its engine models. Monthly production costs for

Answer the following question(s] using the
Answer the following question(s] using the information below Mable's Engine Company manufactures part 292 used in several of its engine models. Monthly production costs for 1,000 units are as follows Direct materials $30 000 Direct labour 8:000 Variable overhead costs 21,000 Fired overhead costs 5 000 Total costs $64 000 Mable's Engine Company has the option of purchasing the part from an outside supplier at $61 per unit It is estimated that all of the fixed overhead costs assigned to Z92 will remain if the company purchases Z92 from the outside supplier If Mables's Engine Company purchases 1 000 292 parts from the outside supplier per month then its monthly operating income will A. decrease by $40 000 C B. decrease by $2 000 C C decrease by $46.000 ( D. Increase by 53:000 ()E. decrease by $23 000

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