Lawson Company Produces a Part That Has the Following Costs

question 15

Multiple Choice

Lawson Company produces a part that has the following costs per unit: Crest Corporation can provide the part to Lawson for $19 per unit.Lawson Company has determined that 60 percent of its fixed overhead would continue if it purchased the part.However,if Lawson no longer produces the part,it can rent that portion of the plant facilities for $60,000 per year.Lawson Company currently produces 10,000 parts per year.Which alternative is preferable and by what margin?

• A)Make-$20,000
• B)Make-$50,000
• C)Buy-$10,000
• D)Buy-$40,000

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Definitions:

Diversity

The inclusion and representation of different groups of people, including those of various races, ethnicities, genders, sexual orientations, abilities, and backgrounds.

Practices

refer to the repeated actions or activities engaged in by individuals or groups, often to maintain, improve, or express competence in a particular field or to follow traditions.

Deficit Perspective

A viewpoint that focuses on what individuals or communities lack in comparison to others, often overlooking their strengths and potential.

Minority Families

Families belonging to a racial, ethnic, religious, or linguistic group that is smaller in number within a larger community or country.