Answer the Following Questions Using the Information Below:
Casper's Engine

question 112

Multiple Choice

Answer the following questions using the information below:
Casper's Engine Company manufactures part TE456 used in several of its engine models.Monthly production costs for 1000 units are as follows:
$$\begin{array} { l r } \text { Direct materials } & \$ 40000 \\\text { Direct labour } & 10000 \\\text { Variable overhead costs } & 30000 \\\text { Fixed overhead costs } & \underline{ 20000 }\\\quad \text { Total costs } & \underline{ \$ 100000} \\\end{array}$$ It is estimated that 10% of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier.Casper's Engine Company has the option of purchasing the part from an outside supplier at $85 per unit.
-If Casper's Engine Company purchases 1000 TE456 parts from the outside supplier per month,then its monthly operating profit will:

• A)increase by $80 000.
• B)decrease by $85 000.
• C)decrease by $3000.
• D)increase by $2000.

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Definitions:

Autonomy

The capacity and freedom to make one's own choices and decisions, independent of external control or influence.

Ostracism

The exclusion or rejection of an individual or group by wider society or a specific group, which can have significant psychological impacts.

Ostracism

The act of excluding or ignoring an individual or group by society or a social group.

Narcissism

A behavioral quality marked by an overblown sense of one's significance, an intense requirement for outsized admiration and attention, and a deficient capacity for empathizing with others.