Answer the Following Question(s)using the Information Below

question 169

Multiple Choice

Answer the following question(s) using the information below.Mable's Engine Company manufactures part Z92 used in several of its engine models.Monthly production costs for 1,000 units are as follows:
Mable's Engine Company has the option of purchasing the part from an outside supplier at $61 per unit.It is estimated that all of the fixed overhead costs assigned to Z92 will remain if the company purchases Z92 from the outside supplier.
-If Mable's Engine Company accepts the offer from the outside supplier, the monthly avoidable costs (costs that will no longer be incurred) total

• A)$59,000.
• B)$38,000.
• C)$64,000.
• D)$15,000.
• E)$21,000.

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Definitions:

Missouri Compromise

A series of agreements passed by Congress in 1820-21 to maintain the balance of power between slave states and free states.

National Crisis

A critical situation or period of significant turmoil that affects an entire nation, posing a substantial challenge to its stability and functioning.

Sectional Issues

Conflicts and disagreements between different geographical regions or sections within a country, often related to economic interests, cultural values, or political power.

Policies Toward Indians

Governmental actions and regulations directed at managing relations with Native American tribes, often involving issues of land, sovereignty, and cultural preservation.