Multiple Choice
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
Correct Answer:

Verified
Correct Answer:
Verified
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