Penagos Corporation Is Presently Making Part Z43 That Is Used

question 150

Multiple Choice

Penagos Corporation is presently making part Z43 that is used in one of its products. A total of 5,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: An outside supplier has offered to produce and sell the part to the company for $20.80 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $4,000 of these allocated general overhead costs would be avoided.If management decides to buy part Z43 from the outside supplier rather than to continue making the part, what would be the annual financial advantage (disadvantage) ?

• A) ($34,500)
• B) ($30,500)
• C) ($15,500)
• D) ($38,500)

Understand the implications of various leadership behaviors on team dynamics and performance.

Distinguish between different components on Blake and Mouton's Leadership Grid.

Learn about significant leadership behavior studies such as the Ohio State studies, University of Michigan studies, and the leadership behavior of Blake and Mouton.

Recognize opportunistic leadership and its impact on leadership effectiveness.

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Definitions:

Introns

Introns are non-coding sequences within a gene that are removed by RNA splicing during maturation of the final mRNA molecule.

Mature mRNA

The final form of messenger RNA (mRNA) after processing, ready for translation into a protein in the cytoplasm.

Reverse Transcriptase

An enzyme that catalyzes the formation of DNA from an RNA template, a process central to the replication of retroviruses.

Recombinant Plasmids

Engineered DNA molecules formed by inserting a fragment of DNA into a plasmid vector, used in genetic engineering and biotechnology.