Answer the Following Question(s) Using the Information Below

question 11

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.
-Audio Labs collected the following information on the cost of producing 20,000 speaker units: Cartunes has offered to sell Audio 10,000 speakers for $56.00 each.
Should Audio Labs make or buy the parts if the facilities remain idle when speakers are purchased?

• A) buy, save $16.00 per unit
• B) buy, save $4.00 per unit
• C) make, save $2.00 per unit
• D) make, save $4.00 per unit
• E) make, save $6.00 per unit

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Definitions:

Mixed-Group Teams

Teams composed of members from diverse backgrounds and disciplines, aimed at enhancing creativity, decision-making, and problem-solving through a variety of perspectives.

Support From Authorities

Refers to the backing or assistance provided by individuals in positions of power or influence, often vital for the initiation or continuation of a project or policy.

Social Identity Theory

A psychological theory proposing that people categorize themselves in social groups, which influences their behaviors and attitudes towards in-group and out-group members.

Social Categorization

The cognitive process by which individuals classify others into groups based on shared characteristics or traits, contributing to identity formation and group perception.