Greenpark Skateboards uses a standard part in the manufacture of several of its skateboards. The cost of producing 42,000 parts is $143,000, which includes fixed costs of $73,000 and variable costs of $70,000. The company can buy the part from an outside supplier for $3.80 per unit, and avoid 30% of the fixed costs. Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $14,000 profit. If the company makes the part, what will its operating income be?
A. $196,700 greater than if the company bought the part
B. $53,700 less than if the company bought the part
C. $53,700 greater than if the company bought the part
D. $81,700 greater than if the company bought the part
