Concierge 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.
What is the effect on income if Concierge Industries purchases the component from the outside supplier?
A) $30,000 increase
B) $30,000 decrease
C) $270,000 increase
D) $270,000 decrease

Question

Concierge 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.
What is the effect on income if Concierge Industries purchases the component from the outside supplier?
A) $30,000 increase 
B) $30,000 decrease 
C) $270,000 increase 
D) $270,000 decrease

Quizplus · Accepted Answer

The Answer of Concierge 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.
What is the effect on income if Concierge Industries purchases the component from the outside supplier?
A) $30,000 increase 
B) $30,000 decrease 
C) $270,000 increase 
D) $270,000 decrease

Concierge Industries Manufactures 40,000 Components Per Year