Elly Industries Is a Multi-Product Company That Currently Manufactures 30,000

question 192

Multiple Choice

Elly Industries is a multi-product company that currently manufactures 30,000 units of part MR24 each month for use in production of its products. The facilities now being used to produce part MR24 have a fixed monthly cost of $150,000 and a capacity to produce 35,000 units per month. If Elly were to buy part MR24 from an outside supplier, the facilities would be idle, but its fixed costs would continue at 40% of their present amount. The variable production costs of Part MR24 are $11 per unit.
-If Elly Industries continues to use 30,000 units of part MR24 each month,it would realize a financial advantage by purchasing this part from an outside supplier only if the supplier's unit price is less than:

• A) $14 per unit
• B) $11 per unit
• C) $16 per unit
• D) $13 per unit

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Definitions:

Neurological Damage

Harm or injury to the nervous system, potentially affecting its structure and function.

Schizophrenic Disorders

A group of severe mental health conditions characterized by distorted thinking, perceptions, emotions, language, sense of self, and behavior.

Dopamine

A neurotransmitter associated with the brain's reward and pleasure centers, as well as movement and motivation.

Narcissistic Personality Disorder

A mental condition characterized by a long-term pattern of exaggerated self-importance, need for admiration, and lack of empathy.