A company produces 100 microwave ovens permonth, each of which includes one electrical circuit. The company currently manufactures circuit in?house but is considering outsourcing the circuits at a contract price of$28 each.Currently, the cost of producing circuits in?house includes variable costs of$26 per circuit and fixed costs of$5,000 per month.
Assume the company could cut fixed costs in half by?out sourcing, and that there is no alternative use for the facilities presently being used to make circuits. How will it affect monthly operating?income, if the company?out sources?
A. Operating income will go down by $200
B. Operating income will stay the same
C. Operating income will go down by $2,800
D. Operating income will go up by $2,300
saving in variable costs in the month
saving in fixed cost in the month 2600
2500 Total saving in the month 5100 less: cost of outsourcing 2800 increase in income 2300
This question was answered on: Sep 18, 2020
Buy this answer for only: $15
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Sep 18, 2020EXPERT
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.