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Yankton Industries Manufactures 20,000 Components Per Year

Question 49

Multiple Choice

Yankton Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows: Yankton Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows: An outside supplier has offered to sell the component for $23.50. What is the effect on income if Yankton Industries purchases the component from the outside supplier? A) $20,000 increase B) $20,000 decrease C) $80,000 decrease D) $80,000 increase An outside supplier has offered to sell the component for $23.50.
What is the effect on income if Yankton Industries purchases the component from the outside supplier?


A) $20,000 increase
B) $20,000 decrease
C) $80,000 decrease
D) $80,000 increase

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