The Camel Company Produces 10,000 Units of Item Roto 454

question 25

Multiple Choice

The Camel Company produces 10,000 units of item Roto 454 annually at a total cost of $190,000.
$$\begin{array} { l r } \text { Direct materials } & \$ 20,000 \\\text { Direct labor } & 55,000 \\\text { Variable overhead } & 45,000 \\\text { Fixed overhead } &\underline{ 70,000} \\ \text { Total } &\underline{ \$ 190,000}\\\end{array}$$
The Yukon Company has offered to supply 10,000 units of Roto 454 per year for $18 per unit. If Camel accepts the offer, $4 per unit of the fixed overhead would be saved. In addition, some of Camel's facilities could be rented to a third party for $15,000 per year.
- What are the relevant costs for the "make" alternative?

• A) $160,000.
• B) $165,000.
• C) $175,000.
• D) $185,000.

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Definitions:

Reparative Therapy

A controversial and largely discredited form of therapy aimed at changing a person's sexual orientation from homosexual or bisexual to heterosexual.

Sexual Conversion Therapy

A controversial and widely discredited psychotherapeutic or religious practice aiming to change a person’s sexual orientation from homosexual or bisexual to heterosexual.

Aversive Fantasy Techniques

Psychological strategies where individuals imagine unpleasant outcomes to discourage certain behaviors or thoughts.

Internalized Homophobia

The involuntary belief, adoption, and application of homophobic attitudes towards oneself.