Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The...
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Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 50,000 parts is $150,000, which includes fixed costs of $90,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $3.20 per unit, and avoid 30% of the fixed costs. If Harvey Automobiles makes the part, how much will its operating income be
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