$$\text { Use the following information for questions } 37 - 38 \text {. }$$

question 42

Multiple Choice

$$\text { Use the following information for questions } 37 - 38 \text {. }$$
Eminen Music produces 60,000 blank CDs on which to record music.The CDs have the following costs:
$$\begin{array} { l l } \text { Direct Materials } & \$ 11,000 \\\text { Direct Labour } & 15,000 \\\text { Variable Overhead } & \mathbf { 3 } , 000 \\\text { Fixed Overhead } & 7,000\end{array}$$
-None of Eminem'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 Eminem would be willing to accept to acquire the 60,000 units externally?

• A)$36,000
• B)$32,000
• C)$33,000
• D)$40,000

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Definitions:

Psychological Disorder

A pattern of behavioral or psychological symptoms that impact multiple areas of life and create distress for the person affected.

Anorexia Nervosa

A psychological and potentially life-threatening eating disorder characterized by extreme weight loss and self-starvation.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by inappropriate methods of weight control, such as vomiting or excessive exercise.

Characteristics

Distinctive traits, qualities, or attributes that describe and differentiate entities, individuals, or groups.