Vest Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows: An outside supplier has offered to sell the component for £12.75.
Vest 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 Vest purchases the component from the outside supplier?

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The Answer of Vest Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows: An outside supplier has offered to sell the component for £12.75.
Vest 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 Vest purchases the component from the outside supplier?

Vest Industries Manufactures 40,000 Components Per Year