The part can be purchased from an outside supplier at $20 per unit. If the part is purchased from the outside supplier, two thirds of the total fixed costs incurred in producing the part can be eliminated. The annual increase or decrease on the company's operating incomes as a result of buying the part from the outside supplier would be:

$2,000 Decrease

Explanation:

Calculation to determine what The annual increase or decrease on the company's operating incomes as a result of buying the part from the outside supplier would be:

First step is to calculate C saving from not producing parts

C saving from not producing parts = $12 + (2/3 x $9)

C saving from not producing parts = $18

Now let determine The annual increase or decrease on the company's operating incomes

purchase price = $20

Annual increase or decrease =($20-$18) x 1,000

Annual increase or decrease =$2 more per unit x 1,000

Annual increase or decrease = $2,000 decrease

Therefore The annual increase or decrease on the company's operating incomes as a result of buying the part from the outside supplier would be:$2,000 Decrease

answer; i believe the correct answer is (form utility); good luck

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.