Lewis Auto Company Manufactures a Part for Use in Its

question 171

Essay

Lewis Auto Company manufactures a part for use in its production of automobiles.When 10,000 items are produced, the costs per unit are:
Monty Company has offered to sell Lewis Auto Company 10,000 units of the part for $120 per unit.The plant facilities could be used to manufacture another part at a savings of $180,000 if Lewis Auto accepts the supplier's offer.In addition, $20 per unit of fixed manufacturing overhead on the original part would be eliminated.Required:
a.What is the relevant per unit cost for the original part?
b.Which alternative is best for Lewis Auto Company? By how much?

Differentiate between internal and external attributions and their role in behavior assessment.

Recognize the influence of distinctiveness, consistency, and consensus on attributions.

Comprehend the impact of recency effect, primacy effect, and halo effect on perception.

Understand the implications of self-serving bias and fundamental attribution error in personal and professional contexts.

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Definitions:

Office Furniture

Equipment and accessories designed for use in a workplace setting, including desks, chairs, and filing cabinets.

Sum-Of-The-Years-Digits

A method of depreciation which accelerates cost recovery of an asset by applying a decreasing fraction of its depreciable cost each year.

Resale Value

The estimated amount that an asset or item is expected to sell for at some point in the future.

Equipment

Tools, machinery, or other durable items necessary for the completion of a task or the operation of a business.