Business, 06.05.2020 04:42 heartykwarteng12

Best Bicycles Inc uses a standard part in the manufacture of several of its bikes. The cost of producing 43,000 parts is $140,000, which includes fixed costs of $68,000 and variable costs of $72,000. The company can buy the part from an outside supplier for $3.80 per unit, and avoid 30% of the fixed costs. If Best Bicycles makes the part, how much will its operating income be?

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Best Bicycles Inc uses a standard part in the manufacture of several of its bikes. The cost of produ...