Business, 18.11.2019 19:31 bryan519688

Value electronics uses a standard part in the manufacture of different types of radios. the total cost of producing 25,000 parts is $95,000, which includes fixed costs of $40,000 and variable costs of $55,000. the company can buy this part from an external supplier for $3 per unit and avoid 20% of the fixed costs. if value electronics decides to outsource the production of the part, how will it impact its operating income?

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Value electronics uses a standard part in the manufacture of different types of radios. the total co...

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