DC Electronics Uses a Standard Part in the Manufacture of Several

question 111

Multiple Choice

DC Electronics uses a standard part in the manufacture of several of its radios. The total cost of producing 30,000 parts is $90,000, which includes fixed costs of $33,000 and variable costs of $57,000. The company can buy the part from an outside supplier for $2.50 per unit, and avoid 30% of the fixed costs.
If DC Electronics decides to outsource the production of the part, how will it impact operating income?

• A) Up $15,000
• B) Down $24,900
• C) Up $132,000
• D) Down $132,000

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Definitions:

Dopamine

Dopamine is a neurotransmitter involved in many functions, including mood regulation, motivation, and the reward system, affecting how we perceive pleasure.

Therapeutic Approaches

Various strategies and methods used in treatment to address and ameliorate psychological, physical, and emotional health issues.

ADHD

Stands for Attention Deficit Hyperactivity Disorder, a neurodevelopmental condition characterized by inattention, hyperactivity, and impulsivity.

Stimulant Medication

Drugs designed to increase alertness, attention, and energy by stimulating the central nervous system, often used to treat conditions like ADHD.