Averette & Averette Averette & Averette, a Local Dental Practice, Currently Makes Its

question 30

Multiple Choice

Averette & Averette
Averette & Averette, a local dental practice, currently makes its own dentures for customers. The dental practice has one part-time employee who comes in weekly to make dentures. The employee is paid $150 per denture set. The direct materials and variable overhead cost per set of dentures is $75 and $25, respectively. In addition, the practice allocates $10 000 of fixed overhead to the denture-making department. The practice makes 1000 sets of dentures per year. An outside company who specialises in the making of dentures has offered to make each set of dentures for Averette & Averette for $255 per set.

-If Averette & Averette outsources the making of dentures,net income will:

• A) decrease by $15 000.
• B) increase by $5000.
• C) increase by $15 000.
• D) decrease by $5000.

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Definitions:

Social Forces

The societal structures, cultural norms, and institutional practices that influence individuals' behaviors, attitudes, and life chances.

Cultural Forces

The various elements within a society that influence and shape its cultural beliefs, values, norms, and practices, including religion, media, laws, and traditions.

Stream of Consciousness

A literary technique or narrative mode that attempts to capture the flow of thoughts and feelings running through the mind.

William James

An American philosopher and psychologist, often referred to as the father of American psychology, known for his works on pragmatism and the psychology of religious experience.