WT Ginsburg Engine Company Manufactures Part ACT30107 Used in Several

question 4

Multiple Choice

W.T. Ginsburg Engine Company manufactures part ACT30107 used in several of its engine models. Monthly production costs for 1,090 units are as follows:

It is estimated that 6% of the fixed overhead costs assigned to ACT30107 will no longer be incurred if the company purchases ACT30107 from the outside supplier. W.T Ginsburg Engine Company has the option of purchasing the part from an outside supplier at $94.75 per unit.
If the company accepts the offer from the outside supplier, the monthly avoidable costs (costs that will no longer be incurred) total ________.

• A) $90,320
• B) $89,000
• C) $111,000
• D) $112,320

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Definitions:

Unequal Pupil Size

A condition where the pupils of the eyes are different sizes, which can be a sign of underlying health issues.

Antidiuretic Hormone

A hormone produced by the pituitary gland that helps regulate the balance of water in the body by reducing urine production.

Level of Consciousness

The measure of a person's wakefulness and awareness of their environment and self.

Labwork

Medical tests or procedures performed in a laboratory to diagnose, monitor, or measure health conditions.