Office Expert Inc. produces a component which is required for manufacturing many of its appliances. The...

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Office Expert Inc. produces a component which is required for manufacturing many of its appliances. The monthly production data for the component are as follows: Monthly Production Data for Component Production Data Amounts Number of units produced 2,500 units Variable costs per unit $10 per unit Total monthly fixed costs (allocated) $18,000 The company received an offer from a foreign supplier to purchase the component for $15 per unit. The monthly fixed costs are unavoidable. However, if Office Expert decides to purchase the component, they can use the freed manufacturing space to earn an additional revenue of $20,000 per month. If Office Expert decides to purchase from the foreign supplier, monthly operating income would - - Decrease by $24,000 Increase by $7,500 Increase by $25,500 Decrease by $12,500 Office Expert Inc. produces a component which is required for manufacturing many of its appliances. The monthly production data for the component are as follows: Monthly Production Data for Component Production Data Amounts Number of units produced 2,500 units Variable costs per unit $10 per unit Total monthly fixed costs (allocated) $18,000 The company received an offer from a foreign supplier to purchase the component for $15 per unit. The monthly fixed costs are unavoidable. However, if Office Expert decides to purchase the component, they can use the freed manufacturing space to earn an additional revenue of $20,000 per month. If Office Expert decides to purchase from the foreign supplier, monthly operating income would - - Decrease by $24,000 Increase by $7,500 Increase by $25,500 Decrease by $12,500