Dong Fang Company Fabricates Inexpensive Automobiles for Sale to 3^rd

question 141

True/False

Dong Fang Company fabricates inexpensive automobiles for sale to 3^rd world countries. Each auto includes one wiring harness, which is currently made in-house. Details of the harness fabrication are as follows:
$$\begin{array} { | l | r | r | } \hline \text { Volune } & 900 & \text { Units per month } \\\hline \text { Varigble cost per unit } & \$ 8.00 & \text { Per unit } \\\hline \text { Fixed costs } & \$ 14,000 & \text { Per month } \\\hline\end{array}$$
A factory in Indonesia has offered to supply Dong Fang with ready-made units for a price of $14.00 each.
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Assume that Dong Fang's fixed costs are unavoidable, and that Dong Fang will not be able to use the excess capacity in any profitable manner. In order to maximize operational income, Dong Fang should not outsource.

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Item Master File

A comprehensive database containing detailed information about each item or product managed within an inventory system.

Purchases

The act of buying goods and services, which can include components, raw materials, or finished products.

Short-Term Scheduling

The process of organizing and optimizing operations or tasks in the near term, focusing on efficient allocation of resources to meet immediate production or service goals.

Assigns Jobs

The act of allocating or designating work tasks to individuals or groups based on criteria such as skills, availability, or strategic importance.