Bryon Industries manufactures 20,000 components per year.The manufacturing cost of the components was determined as follows: An outside supplier has offered to sell the component for $17.If Bryon purchases the component from the outside supplier,the manufacturing facilities would be unused and could be rented out for $10,000.If Bryon purchases the component from the supplier instead of manufacturing it,the effect on income would be:
A)a $70,000 increase
B)a $50,000 decrease
C)a $10,000 decrease
D)a $30,000 increase

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The Answer of Bryon Industries manufactures 20,000 components per year.The manufacturing cost of the components was determined as follows: An outside supplier has offered to sell the component for $17.If Bryon purchases the component from the outside supplier,the manufacturing facilities would be unused and could be rented out for $10,000.If Bryon purchases the component from the supplier instead of manufacturing it,the effect on income would be:
A)a $70,000 increase
B)a $50,000 decrease
C)a $10,000 decrease
D)a $30,000 increase

Bryon Industries Manufactures 20,000 Components Per Year