Cotton Corp

question 81

Multiple Choice

Cotton Corp.currently makes 10,000 subcomponents a year in one of its factories.The unit costs to produce are: An outside supplier has offered to provide Cotton Corp.with the 10,000 subcomponents at an $84.50 per unit price.Fixed overhead is not avoidable.If Cotton Corp.rejects the outside offer,what will be the effect on short-term profits?

• A)$260,000 increase
• B)$195,000 decrease
• C)no change
• D)$65,000 increase

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Definitions:

Denominator

In a fraction, the number below the division line, indicating the total number of parts.

Degrees of Freedom

The volume of exclusive values or quantities that can be allotted to a statistical distribution.

DfWG

Degrees of Freedom Within Groups, related to variance analysis, expressing the number of independent pieces of information within groups.

Respondents

Individuals who provide data or answers in a survey, study, or experiment.