The SP Corporation Makes 40,000 Motors to Be Used in the Production

question 160

Multiple Choice

The SP Corporation makes 40,000 motors to be used in the production of its sewing machines.The average cost per motor at this level of activity is:
An outside supplier recently began producing a comparable motor that could be used in the sewing machine.The price offered to SP Corporation for this motor is $18.If SP Corporation decides not to make the motors,there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided.Direct labor is a variable cost in this company.The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be:

• A) $276,000
• B) $86,000
• C) ($92,000)
• D) $178,000

Apply knowledge of subject-verb agreement in various sentence structures.

Interpret the role of modifiers in providing additional information about subjects and verbs.

Demonstrate the ability to distinguish between complete and incomplete verbs in sentences.

Build proficiency in parsing sentences for effective communication.

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Definitions:

Least Skilled

Referring to individuals with the minimal level of competencies, abilities, or expertise in a particular area or field.

Greatest Effort

The highest level of effort that an individual can possibly exert towards achieving a particular goal.

Social Loafing

The occurrence where people put in less effort towards achieving an objective when they are part of a team, as opposed to when they are working by themselves.

Personally Accountable

The responsibility an individual takes for their actions, including the consequences and outcomes of those actions.