Answer the Following Question(s)using the Information Below

question 162

Multiple Choice

Answer the following question(s) using the information below.Day Star collected the following information:
Day Star can sell 25,000 units per year, at $80 each.The company also has an offer from a subsidiary to rent its plant facilities for $2,000,000.The fixed overhead will be incurred in each alternative, but there will be a savings of $150,000 in the fixed costs under the renting alternative.
-Based on the above information only, should Day Star make or buy the product or rent its facilities out?

• A)buy
• B)make
• C)either make or buy - indifferent
• D)rent the facilities to the subsidiary
• E)either make or rent - indifferent

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Definitions:

EMG

Electromyography, a diagnostic procedure to assess the health of muscles and the nerve cells that control them.

EEG

Short for electroencephalogram, a test that measures electrical activity in the brain using small, flat metal discs attached to the scalp.

ECG

An electrocardiogram, a diagnostic tool that measures and records the electrical activity of the heart to detect cardiac abnormalities.

Action Potentials

Rapid changes in the membrane potential that briefly reverse the polarity of a neuron or muscle cell, allowing for signal transmission.