Use the Following Data for Next 2 Questions

question 125

Multiple Choice

Use the following data for next 2 questions:
Tieton Co. has two departments, Fabrication and Assembly. They produce 2 products. Product T needs 6 hours in fabrication and 6 hours in assembly. Product S needs 2 hours in fabrication and 4 hours in assembly. Fabrication has 24 hours available and Assembly 18. Total variable costs are $ 20 and $15 for T and S respectively. T sells for $22 and S for $16.
-Flox Hill Consulting has its own printing department with the following annual costs: The managers would like to outsource the printing function because it is not considered a core competency. The overhead is 60% fixed. Of the fixed overhead, $60,000 is the salary of the printing department director. The remaining overhead is an allocation of overhead costs for the entire consulting firm. The department director would still oversee the printing activities and coordinate all of the printing activities for the organization with the outside printing vendor. The maximum amount that Flox Hill is willing to pay an outside firm to replace the printing services is

• A) $820,000
• B) $900,000
• C) $700,000
• D) $840,000

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Definitions:

Affirming The Consequent

An invalid mixed hypothetical syllogism in which the categorical premise affirms the consequent of the hypothetical premise and the conclusion affirms the antecedent.

Explanandum

The phenomenon or event that is to be explained in a scientific or philosophical inquiry.

Hypothesis

A proposed explanation for a phenomenon made as a starting point for further investigation, testing, or experimentation.

Plausible

Seeming reasonable or probable; believable or credible.