Answer the Following Question(s)using the Information Below

question 176

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.
-Lynn Valley Corporation currently manufactures a subassembly for its main product.The costs per unit are as follows: Reliance Corp has contacted Lynn Valley with an offer to sell them 5,000 of the subassemblies for $44.00 each.Lynn Valley will eliminate $50,000 of fixed overhead if it accepts the proposal.Should Omark make or buy the subassemblies? What is the difference between the two alternatives?

• A)buy; savings = $20,000
• B)buy; savings = $50,000
• C)make; savings = $60,000
• D)make; savings = $10,000
• E)buy; savings = $10,000

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Definitions:

Neuroticism

A personality trait associated with a higher likelihood of experiencing negative emotions such as anxiety, depression, and anger.

Avoidant Attachment

A pattern of attachment in which individuals actively maintain emotional distance from others and dismiss the importance of close relationships.

Strange Situation

The Strange Situation is a procedure developed by Mary Ainsworth in the 1970s to observe attachment relationships between a caregiver and child.

Secure Attachment

A type of attachment style identified in psychology where individuals feel confident and trusting in their relationships, having a positive view of self and others.