Answer the Following Questions Using the Information Below:
Rubium Micro

question 39

Multiple Choice

Answer the following questions using the information below:
Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows:
$\begin{array}{lr}\text { Direct materials } & \$ 45.00 \\\text { Direct labor } & 35.00 \\\text { Variable overhead } & 33.00 \\\text { Fixed overhead } & 30.00\\\text { Total }&\$143.00\end{array}$ Crayola Technologies Inc. has contacted Rubium with an offer to sell 5,000 of the subassemblies for $135.00 each. Rubium will eliminate $85,000 of fixed overhead if it accepts the proposal.
-What are the relevant costs for Rubium?

• A) $480,000
• B) $485,000
• C) $650,000
• D) $800,000

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Definitions:

Visual Workplace

Uses a variety of visual communication techniques to rapidly communicate information to stakeholders.

Hawthorne

Refers to the Hawthorne Effect, a phenomenon where people improve or modify an aspect of their behavior in response to their awareness of being observed.

Proper Lighting

The adequate provision of light in a space, ensuring visibility and contributing to the comfort and productivity of individuals.

Ergonomics

The study of the human interface with the environment and machines.