Green Company produces 1,000 parts per year,which are used in the assembly of one of its products.The unit product cost of these parts is: The part can be purchased from an outside supplier at $20 per unit.If the part is purchased from the outside supplier,two thirds of the fixed manufacturing costs can be eliminated.The annual impact on the company's net operating income as a result of buying the part from the outside supplier would be:

Question

Green Company produces 1,000 parts per year,which are used in the assembly of one of its products.The unit product cost of these parts is:  The part can be purchased from an outside supplier at $20 per unit.If the part is purchased from the outside supplier,two thirds of the fixed manufacturing costs can be eliminated.The annual impact on the company's net operating income as a result of buying the part from the outside supplier would be:

Quizplus · Accepted Answer

11eaaee8_667b_3ece_933a_512266f1f195_TB5186_00

Green Company Produces 1,000 Parts Per Year,which Are Used in the Assembly