Speck Company Manufactures a Part for Its Production Cycle

question 13

Multiple Choice

Speck Company manufactures a part for its production cycle. The costs per unit for 10,000 units of this part are as follows:
The fixed factory overhead costs are unavoidable.
-Troxel Company has offered to sell 10,000 units of the same part to Speck for $26 a unit. Assuming no other use for the facilities, Speck should

• A) buy from Troxel as this would save $2 per unit.
• B) make the part as this would save $2 per unit.
• C) buy from Troxel as this would save $10 per unit.
• D) make the part as this would save $10 per unit.

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Definitions:

Horney's Theory

A psychoanalytic theory by Karen Horney focusing on social and cultural factors affecting personality, introducing the concepts of basic anxiety and neurotic needs.

Locus of Control

The extent to which individuals believe that they can control events that affect them, with variations ranging from internal (personal control) to external (control by external forces).

Behavioral Evidence

Observational data pertaining to actions and reactions that provide insight into underlying psychological processes or conditions.

Social Cognitive Theory

A theory that emphasizes the importance of observational learning, imitation, and modeling in understanding behavior.