Assume that the Compact Appliances factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $12,000 profit. If Compact Appliances buys the part, how will its operating income be affected?
A) $68,000 greater than if the company made the part
B) $68,000 less than if the company made the part
C) $178,000 greater than if the company made the part
D) $92,000 greater than if the company made the part
Correct Answer:
Verified
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