Answer the Following Question(s)using the Information Below

question 106

Multiple Choice

Answer the following question(s) using the information below.Konrade's Engine Company manufactures part TE456 used in several of its engine models.Monthly production costs for 1,000 units are as follows:
It is estimated that 10% of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier.Konrade's Engine Company has the option of purchasing the part from an outside supplier at $85 per unit.
-The maximum price that Konrade's Engine Company should be willing to pay the outside supplier is

• A)$80 per TE456 part.
• B)$82 per TE456 part.
• C)$98 per TE456 part.
• D)$100 per TE456 part.
• E)$50 per TE456 part.

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Definitions:

Self-efficacy

An individual's confidence in their capacity to achieve success in particular scenarios or complete a task.

Physical Abilities

The bodily capacities and functions that enable an individual to perform physical tasks, including strength, flexibility, endurance, and coordination.

Retirement

The phase of life where an individual stops working on a full-time basis, typically due to age or health reasons.

Modeling

A social learning theory concept where individuals learn behaviors, attitudes, or emotions through observing others.