Barker Company Produces a Part That Is Used in the Manufacture

question 76

Multiple Choice

Barker Company produces a part that is used in the manufacture of one of its products. The costs associated with the production of 5,000 units of this part are as follows:
Of the fixed factory overhead costs, $60,000 is avoidable.
-Assuming no other use of their facilities, the highest price that Barker should be willing to pay for 5,000 units of the part is

• A) $420,000.
• B) $280,000.
• C) $340,000.
• D) $240,000.

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Definitions:

Nonretentive Outputs

Output signals or data in a control system that do not maintain their state after a power cycle or reset.

Latch Instruction

One-half of an instruction pair (the second instruction of the pair being the unlatch instruction) that emulates the latching action of a latching relay. The latch instruction for a programmable logic controller energizes a specified output point or internal coil until it is de-energized by a corresponding unlatch instruction.

MCR Zone

In programmable logic controllers (PLCs), a Master Control Relay zone, which refers to a section of the program controlled by a master relay for safety or operational purposes.