Business, 20.11.2019 21:31 raptortrainor2013

Sanchez semiconductors produces 400 comma 000 high minus tech computer chips per month. each chip uses a component that sanchez makes inminushouse. the variable costs to make the component are $ 1.30 per unit, and the fixed costs are $ 1 comma 200 comma 000 per month. the company has been approached by a foreign producer who can supply the component, within acceptable quality standards, for $ 1.10 each. if the company chooses to outsource, fixed costs can be reduced by 50%. there are no other uses for the facilities currently employed in making the component. what would be the effect on operating income, if the company decides to outsource?

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Sanchez semiconductors produces 400 comma 000 high minus tech computer chips per month. each chip us...

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