Crigui Music Produces 60,000 CDs on Which to Record Music

question 89

Multiple Choice

Crigui Music produces 60,000 CDs on which to record music. The CDs have the following costs: $$\begin{array} { l r } \text { Direct Materials } & \$ 13,000 \\\text { Direct Labor } & 15,000 \\\text { Variable Overhead } & 3,000 \\\text { Fixed Overhead } & 7,000\end{array}$$ None of Crigui's fixed overhead costs can be reduced, but another product could be made that would increase profit contribution by $4,000 if the CDs were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the CDs, what is the maximum external price that Crigui would be willing to accept to acquire the 60,000 units externally?

• A)$38,000
• B)$34,000
• C)$35,000
• D)$42,000

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Definitions:

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, emphasizing the importance of the individual psyche and the personal quest for wholeness.

Psychosexual Stages

A Freudian theory that proposes five stages of psychological and sexual development from infancy to adulthood, each associated with the satisfaction of libidinal desires that can have lasting effects on personality.

Developmental Order

The sequence or pattern in which typical development occurs across various stages in individuals, often related to physical, emotional, or cognitive growth.

Collective Unconscious

A concept in Jungian psychology referring to a part of the unconscious mind, shared among beings of the same species, that contains memories and ideas inherited from ancestors.