Use the Following Information for Questions
Clemente Inc An Outside Supplier Has Offered to Sell Clemente the Subcomponent

question 82

Multiple Choice

Use the following information for questions
Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent: $$\begin{array} { l l } \text { Direct materials } & \$ 8,400 \\\text { Direct labor } & 11,250 \\\text { Variable overhead } & 12,600 \\\text { Fixed overhead } & 16,200\end{array}$$ An outside supplier has offered to sell Clemente the subcomponent for $2.85 a unit.
-If Clemente could avoid $3,000 of fixed overhead by accepting the offer, net income would increase (decrease) by

• A) $750.
• B) $(5,850).
• C) $(3,150).
• D) $6,750.

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Definitions:

SMART Goal

A criteria for setting clear, attainable goals that are Specific, Measurable, Achievable, Relevant, and Time-bound.

Need For Affiliation

A psychological and social concept referring to the desire to belong to a group or be associated with others.

Drop-In Tavern

A bar or tavern that encourages casual visits without the need for reservations or memberships.

SMART Goal

Stands for goals that are Specific, Measurable, Achievable, Relevant, and Time-bound, used in project management and personal development to achieve success.