Factor Co Can Produce a Unit of Product for the Following

question 44

Multiple Choice

Factor Co. can produce a unit of product for the following costs: $\begin{array}{llr} \text { Direct material} &\$8\\ \text { Direct labor} &24\\ \text { Overhead } &40\\ \text {Total costs per unit } &\$72\end{array}$

An outside supplier offers to provide Factor with all the units it needs at $46 per unit. If Factor buys from the supplier, the company will still incur 60% of its overhead. Factor should choose to:

• A) Buy since the relevant cost to make it is $48.
• B) Buy since the relevant cost to make it is $32.
• C) Buy since the relevant cost to make it is $56.
• D) Make since the relevant cost to make it is $48.
• E) Make since the relevant cost to make it is $32.

Interpret data tables to calculate specific probabilities.

Evaluate the impact of external conditions (such as weather or defective components) on probability outcomes.

Understand how statistical evidence can indicate dependency between variables.

Assess the accuracy and implications of statistical tests and measurements.

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