Homework Answers
| Make | Buy | |
| Direct material | 1230000 | |
| Direct labor | 330000 | |
| Variable overhead | 240000 | |
| Opportunity Cost | 20000 | |
| Purchase cost | 1920000 | |
| Total relevant cost | 1820000 | 1920000 |
So answer is b) Operating income would decrease by $100000
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