Use the Following Information for Items
Brad Sherwood Corporation $\text { Per-unit data on the two products is presented blow: }$

question 62

Multiple Choice

Use the following information for items
Brad Sherwood Corporation sells two types of computers; one is designed for audio applications and the other for video applications.Sherwood incurs $300,125 in fixed costs.
$\text { Per-unit data on the two products is presented blow: }$
$\begin{array}{llcc} \underline{\text { Unit data } } &\underline{\text { Audio computer } }&\underline{ \text { Video computer }}\\ \text {Selling price } &\$1,500&\$1,750\\ \text { Variable costs } &\underline{1,100}&\underline{1,200}\\ \text { Contribution margin }& \underline{\$400}&\underline{\$550}\\ \text { Salses mix } &75\%&25\%\\\end{array}$

-The weighted-average contribution margin is

• A)$437.50.
• B)$475.00.
• C)$1,125.00.
• D)$375.00.

Understand the risks and benefits associated with outsourcing.

Discern the reasons for outsourcing project failures and how to mitigate these risks.

Grasp the strategic considerations in retaining core competencies in-house.

Understand the legal and operational risks involved in outsourcing arrangements.

---

Definitions:

Largest Importers

Countries or entities that import the greatest volume of goods from other countries, playing a significant role in global trade.

U.S. Products

Goods and services that are produced within the United States, reflecting the country's economic output.

Services

Economic activities that provide intangible products to satisfy human needs or wants.

Tariffs

Taxes on imported or exported goods designed to restrict trade, raise government revenue, or protect domestic industries.