Use the Information Below to Answer the Following Question(s)

question 226

Multiple Choice

Use the information below to answer the following question(s) :
Part Z45 is a part used in the production of blenders at Andrew Corporation. The following costs and data relate to the production of Part Z45:

Andrew Corporation can purchase the part from an outside supplier for $4.25 per unit. If they purchase from the outside supplier, 40% of the fixed costs would be avoided.
-If Andrew Corporation purchases the part, how much will its operating income be?

• A) $3,000 less than if the company made the part
• B) $24,000 less than if the company made the part
• C) $1,000 less than if the company made the part
• D) $5,000 greater than if the company made the part

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A mosquito-borne infectious disease affecting humans and animals caused by parasitic protozoans of the genus Plasmodium.

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A highly contagious viral disease that presents with fever and a red rash, usually affecting children and potentially leading to serious complications if untreated.

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