Part U67 Is Used in One of Broce Corporation's Products

question 71

Essay

Part U67 is used in one of Broce Corporation's products.The company's Accounting Department reports the following costs of producing the 7,000 units of the part that are needed every year. An outside supplier has offered to make the part and sell it to the company for $21.40 each.If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided.The special equipment used to make the part was purchased many years ago and has no salvage value or other use.The allocated general overhead represents fixed costs of the entire company.If the outside supplier's offer were accepted, only $6,000 of these allocated general overhead costs would be avoided.

Required:
a.Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it inside the company.
b.Which alternative should the company choose?

Identify the four scales of measurement and their characteristics.

Recognize the relevance of convergent and discriminant validity in measuring constructs.

Understand the application of content and face validity in research contexts.

Differentiate between concurrent, predictive, and discriminant validity.

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Definitions:

Tert-butanol

A tertiary alcohol with the chemical formula \(C_4H_{10}O\), used as a solvent and in the manufacture of other chemicals, known for its high reactivity.

Sulfuric Acid

A highly corrosive strong mineral acid with molecular formula H2SO4, widely used in industry and as a laboratory reagent.

Elimination Product

A molecule resulting from the removal of atoms or groups from a reactant, typically involving the loss of a small molecule like water or hydrogen halide.

Major Organic Product

The primary product of a chemical reaction involving organic compounds which is formed in the greatest yield.