Business
Business, 18.12.2019 23:31, queen9384

Voltaic electronics uses a standard part in the manufacture of different types of radios. the total cost of producing 35,000 parts is $ 110,000, which includes fixed costs of $ 50,000 and variable costs of $ 60,000. the company can buy the part from an outside supplier for $ 1 per unit and avoid 20% of the fixed costs. assume that the company can use the freed manufacturing space to make another product that can earn a profit of $ 15,000. of voltaic outsources, what will be the effect on operating income?

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