Answer the Following Question(s) Using the Information Below

question 119

Multiple Choice

Answer the following question(s) using the information below.
Schmidt Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows:
Of the fixed factory overhead costs, $30,000 is avoidable.
-Lynn Valley Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Reliance Corp has contacted Lynn Valley with an offer to sell them 5,000 of the subassemblies for $44.00 each. Lynn Valley will eliminate $50,000 of fixed overhead if it accepts the proposal.
Should Omark make or buy the subassemblies? What is the difference between the two alternatives?

• A) buy; savings = $20,000
• B) buy; savings = $50,000
• C) make; savings = $60,000
• D) make; savings = $10,000
• E) buy; savings = $10,000

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Definitions:

Geologic Timescale

A chronological dating system used by geologists and other scientists to describe the timing and relationships of events in Earth's history.

Geologic Timescale

A system of chronological dating that classifies geological strata in time, used by geologists, paleontologists, and other Earth scientists to describe the timing and relationships of events in geologic history.

Unconformity

A surface within rock layers that represents a period of erosion or non-deposition, indicating a break in the geological record.

Index Species

Species that indicate the presence of particular environmental conditions, used by scientists to assess the health of ecosystems.