Part P40 Is a Part Used in the Production of Air

question 250

Multiple Choice

Part P40 is a part used in the production of air conditioners at Jackson Corporation. The following costs and data relate to the production of Part P40: Jackson Corporation can purchase the part from an outside supplier for $4.25 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $2,000 profit. If Jackson Corporation makes the part, what will its operating income be?

• A)$5,500 less than if the company bought the part
• B)$5,500 greater than if the company bought the part
• C)9,500 greater than if the company bought the part
• D)$111,500 greater than if the company bought the part

Recognize strategies for managing demand variability and improving supply chain flexibility.

Understand the supply chain decision-making framework and its impact on supply chain performance.

Calculate and interpret basic mathematical operations relevant to financial and operational aspects of supply chain management.

Describe the role and importance of supply chain drivers in enhancing supply chain performance.

---

Definitions:

Gender Role

The set of social and behavioral norms that are considered appropriate for individuals of a specific sex in the context of a specific culture, which differ widely between cultures and over time.

Gender Typing

Gender typing encompasses the acquisition of a traditional gender role, involving the behaviors, beliefs, and attitudes that society considers appropriate for males or females.

Neuroticism

A personality trait characterized by anxiety, fear, moodiness, worry, envy, frustration, jealousy, and loneliness.

X Chromosome

The sex chromosome found in both men and women. Females have two X chromosomes; males have one. An X chromosome from each parent produces a female child.