Answer the Following Questions Using the Information Below

question 76

Multiple Choice

Answer the following questions using the information below:
Stephans Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows:
Bill Company has contacted Stephans with an offer to sell them 5,000 of the subassemblies for $22.00 each. Stephans will eliminate $25,000 of fixed overhead if it accepts the proposal.
-What are the relevant costs for Stephans?

• A)$140,000
• B)$125,000
• C)$105,000
• D)$80,000

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Definitions:

Plan Success

Developing a strategic approach to achieve desired outcomes or targets.

Coordination

The act of organizing and making different elements work together effectively to achieve a goal.

Constraints

Limitations or restrictions that affect the course of action or decision-making.

Organizational Objectives

The established goals that a company or organization aims to achieve in a specific timeframe.