The Change in the Company's Overall Annual Net Operating Income

question 82

Multiple Choice

The change in the company's overall annual net operating income that would result from making the component,rather than buying it,would be:

• A) $14,000 decrease.
• B) $1,000 decrease.
• C) $5,000 increase.
• D) $17,000 increase.

---

Definitions:

Labor

The effort by workers to produce goods or services, typically measured in terms of hours worked or output produced.

Additional Unit

Refers to the next unit of a product or service to be produced or consumed, considered in analysis of costs and benefits.

Competitive Employer

An employer who maintains a strong position within the labor market by offering compelling wages, benefits, or working conditions to attract and retain employees.

Inputs

Resources used in the production of goods and services, including labor, capital, materials, and technology.