Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. voltaic electronics uses a standard part in the ma

Voltaic Electronics uses a standard part in the manufacture of different types of radios. The...

90.2K

Verified Solution

Question

Accounting

image

Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 35,000 parts is $105,000, which includes fixed costs of $50,000 and variable costs of $55,000. The company can buy the part from an outside supplier for 52 per unit and avoid 20% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $16,000. If Voltaic outsources, what will be the effect on operating income? O A. decrease of $10,000 B. increase of $11,000 OC. increase of $16,000 OD. decrease of $11,000

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

Biology
1.2K views

Water runoff is a normal part of the hydrologic cycle Why is water runoff in...

Physics
1.2K views

The magnitude of the repulsive force between two ions, A1+ and B1- at equilibrium is 0.0000000094...

Physics
1.2K views

Consider three point charges arranged along the xx axis. Charge q1q1q1 = -4.20 nCnC is located...

Basic Math
1.2K views

2 Use the table to write an equation that defines the volume V in quarts...

Statistics
1.2K views

R 10 40 The recruitment director for a large engineering firm categorizes universities based on...

Algebra
1.2K views

State whether each equation represents a direct joint inverse or combined variation Then name the...

Algebra
1.2K views

3 In how many ways can we put 20 identical silver coins into five coloured...

Accounting
1.2K views

4. Partial balance Sheets for Alpha Company and additional...

Accounting
1.2K views

\table[[issued and outstanaing,$100,000

Accounting
1.2K views

Memo 3: Standards related to the acquisition and expenditure cycle Create an Audit memo for...

Accounting
1.2K views

Case 10-17 Working Backwards from Variance Data [LO10-1, L010-2, LO10-3] Vitex, Inc. manufactures a popular...

Finance
1.2K views

Use the following to answer the following question(s). Roddy Richards invested $12014.88 in Wolverine Meat...