Answer the Following Questions Using the Information Below:
Stephans Corporation

question 153

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:
$$\begin{array} { l r } \text { Direct materials } & \$ 1.00 \\\text { Direct labour } & 10.00 \\\text { Variable overhead } & 5.00 \\\text { Fixed overhead } & \underline { 8.00 } \\\quad \text { Total } & \underline{\$ 24.00} \\\end{array}$$ Bill Company has contacted Stephans with an offer to sell them 5000 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)$125 000
• B)$140 000
• C)$105 000
• D)$80 000

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Definitions:

International Economic Factors

Encompass global influences that impact the economic conditions of countries, such as trade policies, exchange rates, and international investment flows.

Culture as Economic Indicator

Culture as an economic indicator involves looking at cultural trends and values to glean insights into economic health and consumer behavior.

Dialectic

A method of argument for resolving disputes by logically debating contradictions and oppositions to reach a synthesis or conclusion.

Learned Behavior

Behavior that is acquired through experience or by observing the actions of others.