Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 40,000 parts is $120,000, which includes fixed costs of $60,000 and variable costs of $60,000. The company can purchase the part from an outside vendor for $3.00 per unit and avoid 30% of the fixed costs.

If Harvey Automobiles makes the part, what will be its operating profit?

Answer rating: 100% (QA)

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