Clifford,Inc

question 68

Multiple Choice

Clifford,Inc.currently manufactures 2,000 subcomponents in one of its factories.The unit costs to produce the subcomponents are: The unit costs to produce are:
Due to a labor strike,Clifford is considering purchasing the subcomponents from an outside supplier for $250 per unit rather than paying the 10% increase in direct labor costs demanded by the union.Fixed overhead is not avoidable.If Clifford purchases the subcomponent from the outside supplier,how much will profit differ from what it would be if it manufactured the subcomponents with the increase in direct labor cost?

• A)$30,000 less
• B)$20,000 less
• C)$10,000 less
• D)$20,000 more

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Definitions:

Chemical Change

A process where substances interact to form new substances with different chemical and physical properties.

Lower-Quality Energy

Energy forms that are less useful or harder to convert into work, often associated with higher entropy and less efficiency in usage.

Matter And Energy Laws

Refers to the physical laws that govern the behavior and interaction of matter and energy in physical systems, including the conservation of energy and the conservation of mass.

Recycle

The process of converting waste materials into new products to prevent waste of potentially useful materials, reduce the consumption of fresh raw materials, reduce energy usage, reduce air pollution (from incineration) and water pollution (from landfilling).