A ________ is a party that can conduct independent assessment of cloud service, information sytem operations, performance, and security of the cloud implementation

A company produces 100 microwave ovens per month, each of which includes one electrical circuit

The company currently manufactures the circuits in-house but is considering outsourcing the circuits at a contract cost of $30 each. Currently, the cost of producing circuits in-house includes variable costs of $24 per circuit and fixed costs of $6,000 per month. Assume the company could eliminate all fixed costs by outsourcing and that there is no alternative use for the facilities presently being used to make circuits. If the company outsources, operating income will ________. A) increase by $600 B) decrease by $3,000 C) decrease by $600 D) increase by $5,400

Value Electronics uses a standard part in the manufacture of different types of radios

The total cost of producing 25,000 parts is $95,000, which includes fixed costs of $40,000 and variable costs of $55,000. The company can buy this part from an external supplier for $3 per unit and avoid 20% of the fixed costs. If Value Electronics decides to outsource the production of the part, how will it impact its operating income? A) Operating income increases by $12,000. B) Operating income decreases by $12,000. C) Operating income increases by $20,000. D) Operating income decreases by $20,000.