Aircraft products, a manufacturer of aircraft landing gear, makes 1,000 units each year of a special valve used in assembling one of its products. the unit cost of producing this valve includes variable costs of $70 and fixed costs of $60. the valves could be purchased from an outside supplier at $77 each. if the valve were purchased from the outside supplier, 40% of the total fixed costs incurred in producing this valve could be eliminated. buying the valves from the outside supplier instead of making them would cause the company's operating income to: 2.85 points a. increase by $26,000. b. increase by $17,000. c. decrease by $9,000 d. decrease by $29,000

Value economics capital scarcity opportunity cost wealth labor trade-offs standard of living good a. condition of not having enough resources to produce all the things people want b. alternative choices made by consumers in the marketplace c. sum of those economic products that are tangible, scarce, useful, and transferable d. tools, equipment, machinery, and factories used in the production of goods and services e. tangible item that is economically useful or that satisfies an economic want f. quality of life based on the ownership of the necessities and luxuries that make life easier g. people with all their efforts, abilities, and skills h. cost of the next-best alternative use of money, time, or resources when one choice is made rather than another i. study of how people try to satisfy their needs through the careful use of scarce resources j. worth that can be expressed in dollars and cents