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Ruth Company Produces 1,000 Units of a Necessary Component with the Following

question 113

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Ruth Company produces 1,000 units of a necessary component with the following costs:  Direct Materials $34,000 Direct Labor 15,000 Variable Overhead 9,000 Fixed Overhead 10,000\begin{array} { l r } \text { Direct Materials } & \$ 34,000 \\\text { Direct Labor } & 15,000 \\\text { Variable Overhead } & 9,000 \\\text { Fixed Overhead } & 10,000\end{array} Ruth Company could avoid $6,000 in fixed overhead costs if it acquires the components externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Ruth Company would accept to acquire the 1,000 units externally?

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Definitions:

Hippocampus

A critical brain structure involved in the formation of new memories and is also associated with learning and emotions.

Neural Center

A central point in the nervous system consisting of neuron clusters that coordinate specific functions.

Explicit Memories

Information and incidents that can be purposely brought to mind.

Hippocampus

A major component of the brain in humans and other vertebrates, playing critical roles in the consolidation of information from short-term to long-term memory and in spatial memory that enables navigation.

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