Olive Corp

question 100

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 accepts the outside offer, what will be the effect on short-term profits?

• A) $160,000 decrease
• B) $320,000 increase
• C) $160,000 increase
• D) $80,000 decrease

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Definitions:

Guilty

The feeling or acknowledgment of having done something wrong or committed an offense, either legally or morally.

Unsatiated

A feeling of not having one's desires or needs fulfilled.

Glucagon-like Peptide-1

A hormone that aids in regulating glucose levels in the blood by increasing insulin production.

Hypothalamus

A region of the brain responsible for producing hormones that control various bodily functions, including temperature regulation, hunger, moods, and the release of hormones from the pituitary gland.