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:

Chromatid Pairing

The alignment of two sister chromatids during cell division, allowing for accurate DNA replication and segregation.

Telophase

The last stage of mitosis and of meiosis I and II when, having reached the poles, chromosomes become decondensed, and a nuclear envelope forms around each group.

Mitosis

The division of the cell nucleus resulting in two daughter nuclei, each with the same number of chromosomes as the parent nucleus; mitosis consists of prophase, prometaphase, metaphase, anaphase, and telophase. Cytokinesis usually overlaps the telophase stage.

Homologous Chromosomes

Pairs of chromosomes in a diploid organism that have the same gene sequence, inherited from each parent, and pair up during meiosis.