Piper Corp

question 173

Multiple Choice

Piper Corp.is operating at 70% of capacity and is currently purchasing a part used in its manufacturing operations for $24 per unit.The unit cost for the business to make the part is $36,including fixed costs,and $26,not including fixed costs.If 15,000 units of the part are normally purchased during the year but could be manufactured using unused capacity,what would be the amount of differential cost increase or decrease from making the part rather than purchasing it?

• A) $30,000 cost decrease
• B) $180,000 cost increase
• C) $30,000 cost increase
• D) $180,000 cost decrease

Describe the significance and characteristics of the grey market.

Understand the concept of consumer identity renaissance and its implication on marketing strategies.

Comprehend the influence of nostalgia on consumer behavior.

Recognize the importance of the global youth market and the preferred communication methods within this demographic.

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Definitions:

Intangible Assets

Non-physical assets that have value due to the rights or information they provide, such as trademarks, patents, and goodwill.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating expenses.

Land Improvements

Enhancements made to a plot of land to increase its value or usability, such as landscaping, fencing, and paving.

Intangible Assets

Non-physical assets held by a company that can produce economic benefits, such as patents, trademarks, copyrights, and goodwill.