Krakowski Company Manufactures a Part for Its Production Cycle The Fixed Factory Overhead Costs Are Unavoidable

question 95

Multiple Choice

Krakowski Company manufactures a part for its production cycle.The costs per unit for 10,000 units of the part are as follows:
$\begin{array}{ll}&\text { Per Unit }\\\text { Direct materials } & \$ 20.00 \\\text { Direct labor } & 15.00 \\\text { Variable factory overhead } & 16.00 \\\text { Fixed factory overhead } & \underline{10.00} \\\text { Total costs } & \$ 61.00\end{array}$
The fixed factory overhead costs are unavoidable.Winters Company has offered to sell 10,000 units of the same part to Krakowski Company for $55 per unit.Assuming no other use for the facilities,Krakowski Company should ________.

• A) make the part to save $40,000
• B) make the part to save $60,000
• C) buy the part from Winters Company to save $40,000
• D) buy the part from Winters Company to save $60,000

Describe the four primary financial statements for a corporation.

Calculate financial ratios and analyze changes in financial position.

Understand the concepts and characteristics of financial reporting (timeliness, understandability, comparability, verifiability).

Understand the concept of net income and net loss and how to calculate them from revenues and expenses.

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Definitions:

Initial Stage

The very beginning phase of a process, project, or development, where foundational steps are taken.

Emotional Pain

A deeply distressing or unpleasant emotional response to a significant loss, betrayal, or failure, often leading to feelings of sadness, grief, or despair.

Numbness

A loss of sensation or feeling in a part of the body, often indicating an underlying medical condition.

Heartbeat

The rhythmic contraction and expansion of the heart, often considered a vital sign of life.