Answer the Following Question(s)using the Information Below

question 162

Multiple Choice

Answer the following question(s) using the information below.Day Star collected the following information:
Day Star can sell 25,000 units per year, at $80 each.The company also has an offer from a subsidiary to rent its plant facilities for $2,000,000.The fixed overhead will be incurred in each alternative, but there will be a savings of $150,000 in the fixed costs under the renting alternative.
-Based on the above information only, should Day Star make or buy the product or rent its facilities out?

• A)buy
• B)make
• C)either make or buy - indifferent
• D)rent the facilities to the subsidiary
• E)either make or rent - indifferent

---

Definitions:

Procedural Justice

The perception of fairness in the processes and procedures used to make decisions within organizations.

Voice

Voice refers to the ability or act of expressing opinions, concerns, or suggestions, particularly in the context of organizational settings, to initiate change or improvements.

Value-Expressive Function

Describes how attitudes and beliefs serve to express an individual's values, self-concept, and social identity.

Distributive Justice

The perceived fairness of the distribution of resources and burdens among members of a group, often scrutinized in organizational settings.