Alpha CoCan Produce a Unit of Beta for the Following Costs

question 71

Multiple Choice

Alpha Co.can produce a unit of Beta for the following costs:
Direct material........................................$ 8
Direct lab or:........................................24
Overhead ............................................40
Total costs per unit..........................$ 72 An outside supplier offers to provide Alpha with all the Beta units it needs at $60 per unit.If Alpha buys from the supplier,Alpha will still incur 40% of its overhead.Alpha should:

• A)Buy Beta since the relevant cost to make it is $72.
• B)Make Beta since the relevant cost to make it is $56.
• C)Buy Beta since the relevant cost to make it is $48.
• D)Make Beta since the relevant cost to make it is $48.
• E)Buy Beta since the relevant cost to make it is $56.

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Definitions:

Talcott Parsons

An influential American sociologist known for his development of sociological theory, particularly regarding the role of social structures and the importance of societal equilibrium.

Fictive Kin

Close relations with people we consider “like family” but who are not related to us by blood or marriage.

Fictive Kin

Non-biological relationships that are recognized as functionally equivalent to family ties due to their emotional or social significance.

Nuclear Family

A family unit consisting of two parents and their children, considered the smallest, most basic social unit in many societies.