Examlex

Solved

Lightning Semiconductors Produces 200,000 Hi-Tech Computer Chips Per Month

question 82

Multiple Choice

Lightning Semiconductors produces 200,000 hi-tech computer chips per month.Each chip uses a component that Lightning makes in-house.The variable costs to make the component are $1.20 per unit,and the fixed costs are $1,300,000 per month.The company has been approached by a foreign producer who can supply the component,within acceptable quality standards,for $1.10 each.The fixed costs are unavoidable,and Lightning would have no other use for the facilities currently employed in making the component.What would be the effect on operating income if the company decides to outsource?


Definitions:

College Students

Individuals enrolled in institutions of higher education pursuing undergraduate or graduate degrees.

30-year-olds

Refers to individuals in their third decade of life, often experiencing significant life transitions in career, relationships, and personal identity.

Personality Traits

Enduring characteristics or qualities that describe an individual's consistent patterns of feeling, thinking, and behaving.

Social Cues

Nonverbal signals and behaviors that guide social interactions and communicate information about a person's feelings, intentions, and social status.

Related Questions