Answer the following question(s)using the information below.Mable's Engine Company manufactures part Z92 used in several of its engine models.Monthly production costs for 1,000 units are as follows:
Mable's Engine Company has the option of purchasing the part from an outside supplier at $61 per unit.It is estimated that all of the fixed overhead costs assigned to Z92 will remain if the company purchases Z92 from the outside supplier.
-If Mables's Engine Company purchases 1,000 Z92 parts from the outside supplier per month, then its monthly operating income will
A)increase by $3,000.
B)decrease by $46,000.
C)decrease by $2,000.
D)decrease by $40,000.
E)decrease by $23,000.

Question

Answer the following question(s)using the information below.Mable's Engine Company manufactures part Z92 used in several of its engine models.Monthly production costs for 1,000 units are as follows:
  Mable's Engine Company has the option of purchasing the part from an outside supplier at $61 per unit.It is estimated that all of the fixed overhead costs assigned to Z92 will remain if the company purchases Z92 from the outside supplier.
-If Mables's Engine Company purchases 1,000 Z92 parts from the outside supplier per month, then its monthly operating income will
A)increase by $3,000. 
B)decrease by $46,000. 
C)decrease by $2,000. 
D)decrease by $40,000. 
E)decrease by $23,000.

Quizplus · Accepted Answer

The Answer of Answer the following question(s)using the information below.Mable's Engine Company manufactures part Z92 used in several of its engine models.Monthly production costs for 1,000 units are as follows:
  Mable's Engine Company has the option of purchasing the part from an outside supplier at $61 per unit.It is estimated that all of the fixed overhead costs assigned to Z92 will remain if the company purchases Z92 from the outside supplier.
-If Mables's Engine Company purchases 1,000 Z92 parts from the outside supplier per month, then its monthly operating income will
A)increase by $3,000. 
B)decrease by $46,000. 
C)decrease by $2,000. 
D)decrease by $40,000. 
E)decrease by $23,000.

Answer the Following Question(s)using the Information Below