Eichholtz Company Uses 10,000 Units of a Part in Its

question 62

Multiple Choice

Eichholtz Company uses 10,000 units of a part in its production process.The costs to make a part are: direct material,$12;direct labor,$25;variable overhead,$13;and applied fixed overhead,$30.Eichholtz has received a quote of $55 from a potential supplier for this part.If Eichholtz buys the part,70 percent of the applied fixed overhead would continue.Eichholtz Company would be better off by

• A)$50,000 to manufacture the part.
• B)$150,000 to buy the part.
• C)$40,000 to buy the part.
• D)$160,000 to manufacture the part.

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Definitions:

Feelings

Emotional states or reactions that are subjective and can influence an individual's mood and behavior.

Emotional Intelligence

This refers to the capability of individuals to recognize their own emotions and those of others, discern between different feelings, label them appropriately, use emotional information to guide thinking and behavior, and manage or adjust emotions to adapt to environments or achieve one's goals.

Manage Emotions

The process of recognizing, understanding, and effectively controlling one's own emotions, as well as responding appropriately to the emotions of others.

Stifle Impulses

The conscious effort to suppress spontaneous desires or tendencies in order to conform to societal expectations or personal goals.