Hitch Company Currently Produces 10,000 Units of a Key Part

question 65

Multiple Choice

Hitch Company currently produces 10,000 units of a key part at a total cost of $512,000 annually.Annual variable costs are $300,000.Of the annual fixed costs,$140,000 relate specifically to this part.The remaining fixed costs are unavoidable. Another manufacturer has offered to supply the part for $48 per unit.The facilities currently used to manufacture the part could be used to manufacture a new product with an expected contribution margin of $55,000 annually.Alternatively,the facilities could be rented out at $68,000 annually.If Hitch Company makes the part,what is the annual opportunity cost of the facilities?

• A)$13,000
• B)$28,000
• C)$55,000
• D)$68,000

Distinguish between the divisions of the peripheral nervous system and their responsibilities.

Comprehend the divisions of the autonomic nervous system and their activation in response to environmental stimuli.

Describe the structure and function of synaptic knobs in neuron communication.

Understand the organization and role of spinal nerves in the motor system.

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Definitions:

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, and other assets.

Vicarious Liability

A legal doctrine holding an individual or entity liable for the actions of another, based on the relationship between them, such as employer-employee.

Ultra Vires Rule

A legal doctrine that acts performed beyond the scope of a corporation's or entity's powers are invalid.

Business Judgment Rule

A legal principle that protects the decisions made by a corporation's board of directors from being challenged in court, provided they were made in good faith and with reasonable care.