Treys Trucks uses a standard part in the manutacture of several of its thicks. The...

70.2K

Verified Solution

Question

Accounting

image
Treys Trucks uses a standard part in the manutacture of several of its thicks. The cost of producing 40,000 parts is $140,000, which includes fixed costs of $50,000 and variable costs of $50,000 The company can buy the part from an outside supplier for $3.40 per unit and avoid 30% of the fixed costs. Assume that factory space freed up by purchasing the part from an outside source can be used to manulacture another product that can be sold for 515,000 proft. If the company makes the part, what will its operating income be? A. $50,000 greater than 2 the compary bought the part B. $156,000 greater than it the company bought the part C. $16,000 less than if the company bought the part D. $16.000 gremer than if the company bought the part Treys Trucks uses a standard part in the manutacture of several of its thicks. The cost of producing 40,000 parts is $140,000, which includes fixed costs of $50,000 and variable costs of $50,000 The company can buy the part from an outside supplier for $3.40 per unit and avoid 30% of the fixed costs. Assume that factory space freed up by purchasing the part from an outside source can be used to manulacture another product that can be sold for 515,000 proft. If the company makes the part, what will its operating income be? A. $50,000 greater than 2 the compary bought the part B. $156,000 greater than it the company bought the part C. $16,000 less than if the company bought the part D. $16.000 gremer than if the company bought the part

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students