Birch Company Manufactures a Part for Its Production Cycle The Fixed Factory Overhead Costs Are Unavoidable

question 119

Multiple Choice

Birch Company manufactures a part for its production cycle.The costs per unit for 5,000 units of this part are as follows: $\begin{array} {ll}\text {Direct materials}&\$3\\\text {Directlabor}&5\\\text {Variable factory overhead}&4\\\text {Fixed factory overhead}&6\\\text {Total costs}&\$16\\\end{array}$ The fixed factory overhead costs are unavoidable.Spalding Corporation has offered to sell 5,000 units of the same part to Birch Company for $15 a unit.Assuming no other use for the facilities, Birch Company should _____.

• A)buy from Scalding Corporation to save $1 per unit
• B)make the part to save $1 per unit
• C)buy from Scalding Corporation to save $3 per unit
• D)make the part to save $3 per unit

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Definitions:

Turnout

The percentage of eligible voters who cast a ballot in an election, often used as a measure of political engagement or apathy.

New Working Class

A term referring to the shift in the working class towards more service-oriented and tech-based jobs in the late 20th and early 21st centuries.

Political Participation

Activities that citizens engage in with the intention of influencing the selection of political leaders and/or the policies they enact, including voting, campaigning, and protest activities.

Turnout Rates

The proportion of qualified voters who participate by voting in an election.