Answer the Following Questions Using the Information Below:
Nullabor Corporation

question 176

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.
-Assuming no other use of their facilities,the highest price that Nullabor should be willing to pay for $10 000 units of the part is:

• A)$180 000
• B)$140 000
• C)$170 000
• D)$210 000

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Definitions:

Row Variable

A variable whose values are presented in rows within a table or matrix, often used in data analysis to compare categories horizontally.

Column Variable

A variable in data represented by columns in a table, often used in statistical analyses to differentiate groups or conditions.

Critical Value

A threshold value that defines the boundary of the critical region, where if the test statistic exceeds this value, the null hypothesis is rejected.

Alpha

A threshold value used in hypothesis testing that represents the level of significance, typically set at 0.05 or 0.01, indicating the probability of wrongly rejecting the null hypothesis.