Compact Appliances Uses a Standard Part in the Manufacture of Several

question 53

Multiple Choice

Compact Appliances uses a standard part in the manufacture of several of its air conditioners.The cost of producing 40,000 parts is $110,000,which includes fixed costs of $50,000 and variable costs of $60,000.The company can buy the part from an outside supplier for $4.00 per unit,and avoid 40% of the fixed costs. If Compact Appliances makes the part,how much will its operating income be?

• A)$30,000 greater than if the company bought the part
• B)$80,000 greater than if the company bought the part
• C)$20,000 greater than if the company bought the part
• D)$120,000 greater than if the company bought the part

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Definitions:

Chromatin

Colored material; the genetic material in the nucleus.

Chromosomes

Structures within cells that contain DNA and gene information crucial for the development, function, and reproduction of all living organisms.

Nucleus

The membrane-bound organelle in a eukaryotic cell that contains the chromosomes and controls the cell's growth and reproduction.

Microtubules

Microtubules are cylindrical structures made of tubulin proteins, part of the cell's cytoskeleton, playing crucial roles in cell division, shape, and transport.