Olive Corp

question 105

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.What is the maximum price Olive Corp.should pay the outside supplier?

• A)$32
• B)$36
• C)$40
• D)$44

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Definitions:

Cooperative

An organization or entity that is owned and run jointly by its members, who share the benefits or profits.

Organizational Politics

The activities within an organization aimed at improving personal or departmental gain, often at the expense of others or the company.

Playing Favorites

The unfair practice of giving preferential treatment to some people over others in similar positions or situations.

Ethical Conflict

A situation where an individual faces a clash between two or more ethical principles or values, making it challenging to decide on the morally right course of action.