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Vest Industries Manufactures 40,000 Components Per Year

Question 68

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


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

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