Bannister Co

question 104

Multiple Choice

Bannister Co.is thinking about having one of its products manufactured by a subcontractor. Currently,the cost of manufacturing 1,000 units follows: If Bannister can buy 1,000 units from a subcontractor for $100,000,it should:

• A)Make the product because current factory overhead is less than $100,000.
• B)Make the product because the cost of direct material plus direct labor of manufacturing is less than $100,000.
• C)Buy the product because the total incremental costs of manufacturing are greater than $100,000.
• D)Buy the product because total fixed and variable manufacturing costs are greater than $100,000.
• E)Make the product because factory overhead is a sunk cost.

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Definitions:

Logotype

A unique design of a company’s name in a specific, fixed style of type, used as a visual symbol of the company’s identity.

Trademark Office

A government agency responsible for registering and protecting trademarks, which are symbols, logos, or names that distinguish goods and services.

Trademark Infringement

The illicit application of a trademark or service mark to products and/or services without permission, in a way that may lead to confusion, deceit, or error regarding the origin of those goods and/or services.

Efficient Shoppers

Refers to consumers who maximize their shopping experience by making well-informed and cost-effective choices.