The Ruth Bicycle Corp

question 132

Multiple Choice

The Ruth Bicycle Corp. is considering whether to continue to make gears for its bicycles, or whether to buy the gears from an outside supplier. It can buy the gears from outside suppliers at $12 per unit. It needs 100,000 units each year. The company has the following manufacturing costs: raw materials = $6 per unit; direct labor = $1 per unit; variable overhead = $2 per unit; avoidable fixed costs of $200,000 per year and non-avoidable fixed costs of $300,000 per year. The effect of stopping pr

• A) Decrease profits by $300,000
• B) Decrease profits by $100,000
• C) Increase profits by $100,000
• D) Increase profits by $300,000

---

Definitions:

High Fowler's Position

A seated position in which a patient is typically elevated 60-90 degrees to facilitate breathing or for other medical purposes.

Bed Rest

A medical treatment in which a person lies in bed for most of the time to recover from an illness or medical condition.

Emptying Bladder

The act or process of releasing urine from the bladder through the urethra to the exterior of the body, an essential function for the removal of waste products.

Hemiplegic Patient

An individual who has paralysis on one vertical half of their body, typically resulting from a stroke or other neurological conditions.