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musickatia [10]
2 years ago
11

Aircraft Products, a manufacturer of aircraft landing gear, makes 1,000 units each year of a special valve used in assembling on

e of its products. The unit cost of producing this valve includes variable costs of $70 and fixed costs of $60. The valves could be purchased from an outside supplier at $77 each. If the valve were purchased from the outside supplier, 40% of the total fixed costs incurred in producing this valve could be eliminated. Buying the valves from the outside supplier instead of making them would cause the company's operating income to: 2.85 points a. Increase by $26,000. b. Increase by $17,000. c. Decrease by $9,000 d. Decrease by $29,000
Business
1 answer:
Sedaia [141]2 years ago
4 0

Answer:

b. Increase by $17,000

Explanation:

For computing the change in the operating income, first we have to determine the cost by make and buy options

Make options:

= Variable cost + fixed cost

= $70 + $60

= $130

Buy options:

= Outside supplier cost + fixed cost × remaining percentage

= $77 + $60 × 60%

= $77 + $36

= $113

So, the difference of cost would be

= $130 - $113

= $17

And, the operating income would be

= Number of units make in each year × cost difference

= 1,000 units × $17

= $17,000

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Answer:

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Five times the sum of a number and 27 is greater then or equal to six times the of that number and 26. what is the solution set
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3 years ago
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Answer:

The journal entries alongwith its explanation are as under:

Explanation:

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3 years ago
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Answer:

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Answer:

disruptive

Explanation:

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