Cruise Company Produces a Part That Is Used in the Manufacture

question 104

Multiple Choice

Cruise Company produces a part that is used in the manufacture of one of its products.The unit manufacturing costs of this part,assuming a production level of 6,000 units,are as follows:

Assume Cruise Company can purchase 6,000 units of the part from Suri Company for $14.00 each,and the facilities currently used to make the part could be used to manufacture 6,000 units of another product that would have an $8 per unit contribution margin.If no additional fixed costs would be incurred,what should Cruise Company do?

• A)Make the new product and buy the part to earn an extra $5.00 per unit contribution to profit.
• B)Make the new product and buy the part to earn an extra $6.00 per unit contribution to profit.
• C)Continue to make the part to earn an extra $2.00 per unit contribution to profit.
• D)Continue to make the part to earn an extra $4.00 per unit contribution to profit.

Interpret graphical representations of supply and demand curves, including shifts due to tax impositions.

Understand the various depth cues and how they contribute to the perception of depth in humans.

Describe the processes involved in visual perception, including the problems of object recognition and the binding problem.

Explain the concept of binocular disparity and its significance in depth perception.

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Definitions:

Counteroffer

A response to an offer in which the original conditions are rejected and replaced with new terms by the party receiving the initial offer.

Electric Bicycle

A bicycle equipped with an electric motor that can assist with pedaling and, in some models, completely take over propulsion.

Extra Tire

A spare tire carried in a vehicle for use in the event of a tire failure.

Electronic Offer

A proposal to enter into a contract transmitted through electronic means, such as email or a website form.