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:

Thalamus

A structure in the brain that relays motor and sensory signals to the cerebral cortex.

Pituitary

A small gland at the base of the brain that produces hormones which regulate growth and the function of other glands in the body.

Split-Brain Surgery

A medical procedure involving the severance of the corpus callosum to treat severe epilepsy, leading to altered communication between the two hemispheres of the brain.

Cerebral Hemispheres

The two halves of the brain, each responsible for different functions and processes, with the left hemisphere typically handling logic and language, and the right hemisphere more involved in creativity and spatial abilities.