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

Understand the concept and significance of unearned fees as a current liability.

Recognize what fixed assets will not have related accumulated depreciation.

Calculate and analyze the elements of financial statements from adjusted trial balance.

Understand and distinguish between current and long-term liabilities.