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Concierge Industries Manufactures 40,000 Components Per Year

Question 89

Multiple Choice

Concierge Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows: Concierge Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows: An outside supplier has offered to sell the component for $12.75. What is the effect on income if Concierge Industries purchases the component from the outside supplier? A) $30,000 increase B) $30,000 decrease C) $270,000 increase D) $270,000 decrease An outside supplier has offered to sell the component for $12.75.
What is the effect on income if Concierge Industries purchases the component from the outside supplier?


A) $30,000 increase
B) $30,000 decrease
C) $270,000 increase
D) $270,000 decrease

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