Examlex
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:
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.
-Should Rubium make or buy the subassemblies? What is the difference between the two alternatives?
Unamortized Discount
The portion of a bond's original issue discount (OID) that has not yet been amortized or expensed over the term of the bond.
Unamortized Premium
An unamortized premium refers to the remaining amount of a premium above the face value of a bond that has not yet been expensed over the bond's life.
Market Rate
The prevailing interest rate available in the marketplace for securities or loans at any given time.
Six-Month
A period or duration of six calendar months.
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