Harvey Automobiles uses a st and variable costs of S70 000 The company can buy t

Question

Harvey Automobiles uses a st and variable costs of S70 000 The company can buy the part from an outside supplier fr S320 per unit, and avoid 30% of the f of several of its trucks. The cost of producing 90,000 parts is $150,000, which includes fxed costs of $80,000 d costs Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $13,000 profit if Harvey Automobiles makes the part, what will its operating income be? O A. $69,000 greater than if the company bought the part O B. $181,000 greater than if the company bought the part O c. s331 ,000 greater than if the company bought the part O D. $181,000 less than if the company bought the part Click to select your answer 7/22/7201 Ei F10 F11 F12 Home End sert Del F6 6 5 P.

Explanation / Answer

Hi As per Chegg policy, only 4 parts can be asnwered in one screen. Please repost balance of the questions seperately

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.

Hi As per Chegg policy, only 4 parts can be asnwered in one screen. Please repost balance of the questions seperately

Part -1 Additional Variable Cost (3.2-0.7778)*90000 -218000 Saving in Fixed Cost 80000*30% 24000 Additional Profit 13000 Income will be Less than the company bought the part -181000 Correct Answer D. Part -2 Salad Plates 7500 3300 Platters 22500 3300 If Salad Plates processed Further: Per Unit Units Produced Total Additional Selling Price 7 3300 23100 Additional Cost of Processing -8700 Net Increase in Income 14400 Correct Answer B. Part -3 If Sporty Not Closed If Sporty Closed Incremental Sales Revenue 490000 360000 130000 Variable Expense 355000 235000 120000 Contribution Margin 135000 125000 10000 Fixed Expense 76000 76000 0 Operating Income/(Loss) 59000 49000 10000 Correct Answer: C Part -4 B. 58000 is the opportunity Cost

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.