Growe Company Manufactures Sewing Machines and Requires 30,000 Units of a Component

question 89

Multiple Choice

Growe Company manufactures sewing machines and requires 30,000 units of a component that is used in the manufacturing process. If Growe buys the part from Zigler Brothers, the plant will be idle. Of the fixed, 55% overhead will continue regardless of the decision. The cost to buy the part from Zigler is $46. The unit cost to make the part is: Relevant costs to make the part are

• A) $1,320,000
• B) $1,380,000
• C) $1,620,000
• D) $1,455,000

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Definitions:

Self-serving Bias

The common habit of a person taking credit for positive events or outcomes but blaming outside factors for negative events.

Defensive Self-esteem

A form of self-esteem characterized by fragility and sensitivity to perceived threats, often leading individuals to react defensively to criticism or challenges.

Spotlight Effect

The tendency to overestimate the extent to which our actions and appearance are noticed by others.

Mathematical Skills

Abilities related to the understanding, analysis, manipulation, and application of numerical and spatial concepts, crucial for solving problems and reasoning logically.