Rubium Micro Devices Currently Manufactures a Subassembly for Its Main

question 97

Multiple Choice

Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows:

Crayola Technologies Inc. has contacted Rubium with an offer to sell 10,000 of the subassemblies for $138.00 each. Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal. What are the relevant costs for Rubium?

• A) $929,000
• B) $1,029,000
• C) $1,409,000
• D) $1,739,000

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Definitions:

Personal Savings Rate

The percentage of personal disposable income that is saved by households rather than spent on consumption.

Current Account Deficit

A current account deficit occurs when a country's total imports of goods, services, and transfers are greater than its total exports, indicating it is spending more on foreign trade than it is earning.

Gold Standard

A monetary system in which a country's currency or paper money has a value directly linked to gold.

Balance Of Trade

The difference between the value of a country's exports and the value of its imports. A positive balance indicates a surplus, while a negative balance indicates a deficit.