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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A leading edge of a cooler mass of air, replacing at ground level a warmer mass of air, which can bring about significant changes in weather.

Onshore Breeze

A wind that blows from the sea towards the land, typically occurring during the day due to differential heating of land and sea surfaces.

High Levels of Pollutants

Concentrations of harmful substances in the environment that exceed accepted safety standards, posing health risks.

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