Answer the Following Question(s)using the Information Below

question 184

Multiple Choice

Answer the following question(s) using the information below.Schmidt Corporation produces a part that is used in the manufacture of one of its products.The costs associated with the production of 10,000 units of this part are as follows:
Of the fixed factory overhead costs, $30,000 is avoidable.
-Phil Company has offered to sell 10,000 units of the same part to Schmidt Corporation for $18 per unit.Assuming there is no other use for the facilities, Schmidt should

• A)make the part, as this would save $3 per unit.
• B)buy the part, as this would save $3 per unit.
• C)make the part, as this would save $4 per unit.
• D)make the part, as this would save $1 per unit.
• E)buy the part, as this would save $4 per unit.

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Definitions:

Repressed

Involuntarily held out of conscious awareness, used particularly to describe memories or impulses that are hidden due to being considered unacceptable.

Early Experiences

Formative events or exposures in the initial stages of life that significantly influence one's development, behavior, and personality.

Unresolved Conflicts

Issues or disagreements that have not been effectively addressed or resolved, potentially leading to ongoing tension and problems.

Emotionally Charged Memories

Recollections that are strongly associated with emotions, often more vivid and lasting.