Truckel, Inc -Saran Company Has Contacted Truckel with an Offer to Sell

question 50

Multiple Choice

Truckel, Inc.currently manufactures a wicket as its main product.The costs per unit are as follows: $$\begin{array} { l r } \text { Direct materials and direct labor } & \$ 11 \\\text { Variable overhead } & 5 \\\text { Fixed overhead } & \$ { 8 } \\\quad \text { Total } & \$ 24\end{array}$$
-Saran Company has contacted Truckel with an offer to sell it 5,000 of the wickets for $18 each.If Truckel makes the wickets, variable costs are $16 per unit.Fixed costs are $8 per unit; however, $5 per unit is unavoidable.Should Truckel make or buy the wickets?

• A)Buy; savings = $15,000
• B)Buy; savings = $5,000
• C)Make; savings = $10,000
• D)Make; savings = $5,000

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Definitions:

Conj

Short for "conjunction," it refers to a logical connective that joins two or more statements or propositions, requiring both or all to be true for the compound statement to be true.

Simp

A term used in internet slang to describe someone who performs excessive sympathy or attention towards another person, often without reciprocation.

Conj

Conj is an abbreviation often used for conjunction, a logical connective combining two or more propositions, events, or states.

Simp

Informal term often used derogatorily to describe someone who is overly submissive or attentive to someone else, often with no reciprocity.