Incremental Costs. Electron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for their sensitive test equipment. The yearly volume of output is 15,000 units. The selling price and cost per unit are shown below:
Management is evaluating the alternative of performing the necessary customizing to allow Electron Control to sell its output directly to Q/A labs for $275 per unit. Although no added investment is required in productive facilities, additional processing costs are estimated as:
Definitions:
Order
The arrangement or disposition of people, items, or concepts in relation to each other following a particular sequence, pattern, or method.
Obsessive-Compulsive Personality Disorder
A personality disorder characterized by a pervasive pattern of preoccupation with orderliness, perfectionism, and mental and interpersonal control, at the expense of flexibility, openness, and efficiency.
Perfectionistic
A personality trait characterized by striving for flawlessness and setting excessively high performance standards.
Obsessive-Compulsive Personality Disorder
A personality disorder characterized by a preoccupation with orderliness, perfectionism, and control, at the expense of flexibility and efficiency.
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