Answer the Following Questions Using the Information Below:
Piels Corporation

question 98

Multiple Choice

Answer the following questions using the information below:
Piels 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:
$\begin{array}{lr}\text { Direct materials } & \$ 90,000 \\\text { Direct labor } & 130,000 \\\text { Variable factory overhead } & 60,000 \\\text { Fixed factory overhead } & 140,000 \\\quad \text { Total costs } & \$ 420,000\end{array}$ Of the fixed factory overhead costs, $60,000 is avoidable.
-Conners Company has offered to sell 10,000 units of the same part to Piels Corporation for $36 per unit.Assuming there is no other use for the facilities,Schmidt should ________.

• A) make the part, as this would save $6 per unit
• B) buy the part, as this would save $6 per unit
• C) buy the part, as this would save the company $60,000
• D) make the part, as this would save $2 per unit

Acknowledge the importance of self-disclosure in developing and maintaining close relationships.

Grasp the effect of group dynamics on individual behavior, including conformity, bystander effect, and deindividuation.

Understand the concept of attribution theory, including situational and dispositional attributions.

Identify factors that contribute to various attribution biases such as the actor-observer effect, fundamental attribution error, and self-serving bias.

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Definitions:

Bonds

Fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental.

Interest Accrued

The amount of interest that has accumulated over time but has not yet been paid or charged.

Par Value

The nominal value of a bond or stock as declared by the issuer, which might not represent its actual market value.

Exchange Rate

The price at which one currency can be exchanged for another currency in the foreign exchange market.