Sarah's Talking Dolls Manufactures a Computer Chip Used in the Production

question 126

Essay

Sarah's Talking Dolls manufactures a computer chip used in the production of dolls for children.When 5,000 dolls are produced,the costs per part are:

Sam's Associates has offered to sell Sarah's Talking Dolls 5,000 parts for $5.75 each.If Sarah accepts the offer,fixed manufacturing costs will decrease by $1.00 per unit.
A)What is the relevant per unit cost to manufacture the part?
B)Which alternative is best for Sarah's Talking Dolls and by how much?

• A)What is the relevant per unit cost to manufacture the part?
• B)Which alternative is best for Sarah's Talking Dolls and by how much?

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Definitions:

Swann v. Charlotte-Mecklenburg

A landmark Supreme Court decision in 1971 that upheld busing as a legitimate means to achieve desegregation in public schools.

De Facto Segregation

Racial segregation occurring without the sanction of law, instead stemming from social, economic, and institutional factors.

Busing

The transportation of students to schools outside their local school districts as a means of achieving racial integration in public schools.

Domestic Policy

Governmental policies addressing the internal matters of a country, such as education, healthcare, and infrastructure.