Value Electronics Uses a Standard Part in the Manufacture of Different

question 69

Multiple Choice

Value Electronics uses a standard part in the manufacture of different types of radios it manufactures.The total cost of producing 25,000 parts is $95,000,which includes fixed costs of $40,000 and variable costs of $55,000.The company can buy this part from an external supplier for $3 per unit,and avoid 20% of the fixed costs.If Value Electronics decides to outsource the production of the part,how will it impact its operating income?

• A)operating income increases by $12,000
• B)operating income decreases by $12,000
• C)operating income increases by $20,000
• D)operating income decreases by $20,000

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Definitions:

Behavioral Assessment

The evaluation of an individual's actions or behaviors, often used in psychology to understand and address behavioral issues.

Purpose of Assessment

The purpose of assessment is to gather and analyze information to make informed decisions, evaluate performance, or determine the needs of individuals or groups.

Scope of the Assessment

The extent or range of areas, items, or issues that an assessment is designed to explore or evaluate.

Behavior Rating Scale System

A method used to assess and document an individual's behavior and performance, often through observer ratings.