Olive Corp

question 41

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:

Superordinate Goals

Superordinate goals are overarching objectives that can only be achieved by the cooperation of two or more individuals or groups, helping to reduce conflict by aligning interests.

Interracial Cooperative

Activities or initiatives that involve collaboration between people of different racial backgrounds, aimed at enhancing mutual understanding and social cohesion.

Ingroup/Outgroup Conflict

Refers to the tension and conflict that arises between groups (ingroups, or groups we belong to, and outgroups, or those we do not belong to) based on identification and loyalty.

Attempted Conciliation

A process where parties in conflict try to reconcile their differences and reach a peaceful resolution.