Foster 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 £25.50.
Foster Industries can rent its unused manufacturing facilities for £45,000 if it purchases the component from the outside supplier.
What is the effect on income if Foster purchases the component from the outside supplier?

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The Answer of Foster 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 £25.50.
Foster Industries can rent its unused manufacturing facilities for £45,000 if it purchases the component from the outside supplier.
What is the effect on income if Foster purchases the component from the outside supplier?

Foster Industries Manufactures 20,000 Components Per Year