Answer the Following Questions Using the Information Below:
Nullabor Corporation

question 187

Multiple Choice

Answer the following questions using the information below:
Nullabor 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:
$$\begin{array} { l r } \text { Direct materials } & \$ 45000 \\\text { Direct labour } & 65000 \\\text { Variable factory overhead } & 30000 \\\text { Fixed factory overhead } & \underline { 70000 } \\\quad \text { Total costs } & \underline{\$ 210000 }\\\end{array}$$ Of the fixed factory overhead costs,$30 000 is avoidable.
-If a company has excess capacity,the most it would pay for buying a product that it currently makes would be the:

• A)market value less the usual mark-up on the product.
• B)market value of the product.
• C)total variable cost of producing the product.
• D)total cost of producing the product.

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Definitions:

Hydroelectricity

The production of electricity using the energy generated from flowing or falling water, typically through dams.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water, releasing oxygen as a byproduct.

Euphotic Zone

The layer of a body of water that is sufficiently lit by sunlight, allowing photosynthesis to occur.

Bathyal Zone

The bathyal zone refers to the oceanic depth range from 200 to 4000 meters below the surface, characterized by limited sunlight and cooler temperatures, inhabiting a unique marine life.