Johnson Company Manufactures a Part for Its Production Cycle

question 145

Multiple Choice

Johnson Company manufactures a part for its production cycle.The annual costs per unit for 10,000 units of the part are as follows: The fixed factory overhead costs are unavoidable.Spalding Company has offered to sell 10,000 units of the same part to Johnson Company for $60 per unit.The facilities currently used to make the part could be rented out to another manufacturer for $100,000 per year.Johnson Company should ________.

• A)make the part to save $1 per unit
• B)make the part to save $2.50 per unit
• C)buy the part to save $1 per unit
• D)buy the part to save $2.50 per unit

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Definitions:

Social Awareness

The ability to understand and empathize with others' feelings and perspectives within social contexts.

Workplace Politics

Refers to the power dynamics, relationships, and strategic interactions among individuals within a work environment.

Religious Script

Texts considered sacred or central to a particular religion, often containing teachings, doctrines, and rituals pertaining to that faith.

Self-Awareness

Self-awareness is the conscious knowledge of one's own character, feelings, motives, and desires, playing a crucial role in personal development.