Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $2,000 profit. If Andrew Corporation makes the part, what will its operating income be?
A) $1,000 less than if the company bought the part
B) $5,000 greater than if the company bought the part
C) $1,000 greater than if the company bought the part
D) $2,000 greater than if the company bought the part
Correct Answer:
Verified
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