Use the Following Information for Questions
Hermantic, Inc -If Hermantic, Inc

question 70

Multiple Choice

Use the following information for questions
Hermantic, Inc.can produce 100 units of a component part with the following costs:
$$\begin{array} { l c } \text { Direct Materials } & \$ 30,000 \\\text { Direct Labour } & 13,000 \\\text { Variable Overhead } & 32,000 \\\text { Fixed Overhead } & \mathbf { 2 2 , 0 0 0 }\end{array}$$
-If Hermantic, Inc.purchases the units externally for $80,000, by what amount will its total costs change? Fixed costs are not avoidable if they purchase externally.

• A)an increase of $80,000
• B)an increase of $5,000
• C)an increase of $17,000
• D)a decrease of $22,000

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Definitions:

Brown Case

The Brown Case, commonly known as Brown v. Board of Education of Topeka, was a landmark 1954 Supreme Court decision that declared racial segregation in public schools unconstitutional in the United States.

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A pivotal event in the American Civil Rights Movement, starting in 1955, where African Americans boycotted the Montgomery public bus system to protest racial segregation.

Martin Luther King

An American Baptist minister and activist who became the most visible spokesperson and leader in the civil rights movement from 1955 until his assassination in 1968, known for advancing civil rights through nonviolence and civil disobedience.

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Residential areas located on the outskirts of a city or large town, typically characterized by lower population density and more single-family homes than the urban center.