Answer the Following Question(s)using the Information Below

question 60

Multiple Choice

Answer the following question(s) using the information below.Mable's Engine Company manufactures part Z92 used in several of its engine models.Monthly production costs for 1,000 units are as follows:
Mable's Engine Company has the option of purchasing the part from an outside supplier at $61 per unit.It is estimated that all of the fixed overhead costs assigned to Z92 will remain if the company purchases Z92 from the outside supplier.
-If Mables's Engine Company purchases 1,000 Z92 parts from the outside supplier per month, then its monthly operating income will

• A)increase by $3,000.
• B)decrease by $46,000.
• C)decrease by $2,000.
• D)decrease by $40,000.
• E)decrease by $23,000.

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Definitions:

Lipids

A group of naturally occurring molecules that include fats, waxes, sterols, fat-soluble vitamins (such as vitamins A, D, E and K), monoglycerides, diglycerides, triglycerides, phospholipids, and others.

Vasoconstriction

The narrowing of blood vessels, which increases blood pressure and reduces blood flow to certain areas of the body.

Environmental Temperature

The measure of heat in the environment, affecting both living and non-living entities.

Body Temperature

Body Temperature is a measure of the body's ability to generate and get rid of heat, crucial for maintaining metabolic processes.