Author Question: Part Z45 is a part used in the production of blenders at Andrew Corporation. The following costs and ... (Read 96 times)

ssal · **on:** Jan 4, 2020

Part Z45 is a part used in the production of blenders at Andrew Corporation. The following costs and data relate to the production of Part Z45:

Number of parts produced annually	20,000
Fixed costs	$40,000
Variable costs	$66,000
Total cost to produce	$106,000

Andrew Corporation can purchase the part from an outside supplier for $4.25 per unit. If they purchase from the outside supplier, 40% of the fixed costs would be avoided.

If Andrew Corporation purchases the part, how much will its operating income be?
◦ $24,000 less than if the company made the part
◦ $3,000 less than if the company made the part
◦ $1,000 less than if the company made the part
◦ $5,000 greater than if the company made the part

orangecrush · **Reply #1 on:** Jan 4, 2020

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 58% of students answer this correctly