Rubium Micro Devices Currently Manufactures a Subassembly for Its Main

question 27

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 6,000 of the subassemblies for $144.00 each. Rubium will eliminate $89,000 of fixed overhead if it accepts the proposal. Should Rubium make or buy the subassemblies? What is the difference between the two alternatives?

• A) Buy; savings = $89,000
• B) Buy; savings = $7,000
• C) Make; savings = $1,000
• D) Make; savings = $203,000

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Definitions:

Done Bit

A status bit that indicates the completion of a task or instruction in programming, often used in PLCs.

Timing Bit

A specific bit in a digital system used to provide a timing signal or to time operations.

Error Signal

An error signal is a measurement in control systems that represents the difference between a desired setpoint and the actual output of the system, used to correct or adjust the system's performance.