Answer the Following Question(s)using the Information Below

question 162

Multiple Choice

Answer the following question(s) using the information below.Day Star collected the following information:
Day Star can sell 25,000 units per year, at $80 each.The company also has an offer from a subsidiary to rent its plant facilities for $2,000,000.The fixed overhead will be incurred in each alternative, but there will be a savings of $150,000 in the fixed costs under the renting alternative.
-Based on the above information only, should Day Star make or buy the product or rent its facilities out?

• A)buy
• B)make
• C)either make or buy - indifferent
• D)rent the facilities to the subsidiary
• E)either make or rent - indifferent

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Definitions:

Storm And Stress

A concept describing the period of adolescence in which teenagers are expected to display turbulent behavior, emotional instability, and conflict with parents.

Self-esteem

A person's personal assessment of their own significance or merit.

Behavior Problems

Actions or reactions by an individual that are disruptive or inappropriate according to societal norms, often indicating underlying psychological issues.

Quality Day Care

Childcare services that meet high standards in safety, health, education, and staff qualifications, positively impacting a child's development and well-being.