DC Electronics Uses a Standard Part in the Manufacture of Several

question 111

Multiple Choice

DC Electronics uses a standard part in the manufacture of several of its radios. The total cost of producing 30,000 parts is $90,000, which includes fixed costs of $33,000 and variable costs of $57,000. The company can buy the part from an outside supplier for $2.50 per unit, and avoid 30% of the fixed costs.
If DC Electronics decides to outsource the production of the part, how will it impact operating income?

• A) Up $15,000
• B) Down $24,900
• C) Up $132,000
• D) Down $132,000

---

Definitions:

Internet Addiction

A psychological disorder characterized by excessive or poorly controlled preoccupations, urges, or behaviors regarding internet use that lead to impairment or distress.

Fear Of Rejection

The anxiety and apprehension experienced over being rejected by others, which can affect social interactions and person’s sense of belonging.

Attractive Person

An individual who is considered physically pleasing or beautiful by societal standards, often influencing social perceptions and interactions.

Relationship Well-Being

The state of health and satisfaction within interpersonal relationships, encompassing emotional, physical, and social aspects.