Office Expert Inc. produces a component which is required for manufacturing many of its appliances. The monthly production data for the component are as follows: Monthly Production Data for Component Production Data Amounts Number of units produced Variable costs per unit Total monthly fixed costs (allocated) 00 The company received an offer from a foreign supplier to purchase the component for $15 per unit. The monthly fixed costs are unavoidable. However, if Office Expert decides to purchase the component, they can use the freed manufacturing space to earn an additional revenue of $20,000 per month. If Office Expert decides to purchase from the foreign supplier, monthly operating income would - Decrease by $24,000 Increase by $7,500 Increase by $25,500 2,500 units $10 per unit Decrease by $12,500 $18,000

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.