Bell's Shop Can Make 1,000 Units of a Necessary Component

question 81

Multiple Choice

Bell's Shop can make 1,000 units of a necessary component with the following costs: $\begin{array}{lr}\text { Direct Materials } & \$ 24,000 \\\text { Direct Labor } & 6,000 \\\text { Variable Overhead } & 3,000 \\\text { Fixed Overhead } & ?\end{array}$ The company can purchase the 1,000 units externally for $39,000.The unavoidable fixed costs are $2,000 if the units are purchased externally.An analysis shows that at this external price, the company is indifferent between making or buying the part.What are the fixed overhead costs of making the component?

• A)$8,000
• B)$6,000
• C)$4,000
• D)Cannot be determined.

Determine the rights of sellers and buyers regarding the recovery and rejection of goods, including situations of insolvency.

Differentiate between types of damages (liquidated, incidental, consequential) within the context of UCC remedies.

Understand the legal implications of non-delivery, rejection of goods, and misrepresentation of solvency in transactions governed by the UCC.

Understand the concept of warranties and applicable time frames for claims.

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Definitions:

Motor Neurons

Specialized nerve cells responsible for transmitting impulses to muscles and glands.

Arachnoid Mater

One of the three layers (meninges) that surround and protect the brain and spinal cord, lying between the dura mater and the pia mater.

Pia Mater

The delicate innermost layer of the meninges, the membranes that envelop the brain and spinal cord, providing protection and support.

Cerebrospinal Fluid (CSF)

The fluid in the subarachnoid space of the meninges and the central canal of the spinal cord.