Olive Corp Currently Makes 20,000 Subcomponents a Year in One

question 33

Multiple Choice

Olive Corp currently makes 20,000 subcomponents a year in one of its factories.The unit costs to produce are: An outside supplier has offered to provide Olive Corp with the 20,000 subcomponents at a $36 per unit price.Fixed overhead is not avoidable.If Olive Corp rejects the outside offer,what will be the effect on short-term profits?

• A)$80,000 increase
• B)no change
• C)$160,000 decrease
• D)$80,000 decrease

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Definitions:

Amoebas

A group of protozoan single-celled organisms with the ability to change shape, known for their movement via pseudopodia.

Two Or More Flagella

The characteristic of an organism having multiple flagella, allowing for enhanced mobility and interaction with its environment.

Alveolates

Protists that have alveoli, flattened vesicles located just inside the plasma membrane; include the dinoflagellates, apicomplexans, and ciliates. See chromalveolates; compare with stramenopiles.

Contractile Vacuoles

Organelles found in certain unicellular organisms responsible for expelling excess water from the cell to maintain osmotic balance.