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

question 15

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.
-At what price would Camel be indifferent to Yukon's offer?

• A) $17.00.
• B) $17.50.
• C) $18.50.
• D) $19.50.

Identify key steps in the application of specific HR forecasting techniques like the Delphi technique.

Recognize the role of environmental factors in influencing HR forecasting.

Distinguish between dependent and independent variables in a forecasting model.

Evaluate factors influencing the choice between quantitative and qualitative forecasting methods.

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Definitions:

Purely Competitive

Refers to a market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, leading to price-taking behavior.

Produce

To create or manufacture goods and products for consumer use.

Cost Table

A detailed listing of all costs associated with specific actions or projects, often used for budgeting and financial planning.

Produce

Agricultural products, especially fruits and vegetables, grown and harvested for human consumption.