Blue Ridge Bicycles Uses a Standard Part in the Manufacture

question 100

Multiple Choice

Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 43,000 parts is $140,000, which includes fixed costs of $68,000 and variable costs of $72,000. The company can buy the part from an outside supplier for $3.80 per unit, and avoid 30% of the fixed costs. If Blue Ridge Bicycles makes the part, how much will its operating income be?

• A)$88,400 less than if the company bought the part
• B)$71,000 less than if the company bought the part
• C)$88,400 greater than if the company bought the part
• D)$71,000 greater than if the company bought the part

Identify the factors influencing the decisions of policymakers to promote growth in living standards.

Comprehend the impact of health, education, and nutrition on long-run economic growth.

Recognize the relationship between population growth and education levels.

Analyze the challenges poor countries face to catch up with rich countries in terms of economic growth.

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Definitions:

Irrational Assumptions

Beliefs or thoughts that are not based on reason or factual evidence, often leading to negative consequences or behaviors.

Mortality Risk

The likelihood of dying within a specified period, often associated with factors like age, lifestyle, and diseases.

Exercise Opportunities

The availability or provision of options to engage in physical activity or exercise in various environments.

Statistically Significant

A determination in hypothesis testing that the observed results are unlikely to occur by chance, indicating a true effect.