Tosh Company Fabricates Automobiles A Factory in Indonesia Has Offered to Supply Tosh with Currently

question 167

True/False

Tosh Company fabricates automobiles.Each auto includes one wiring harness,which is currently made in-house.Details of the harness fabrication are as follows:
$$\begin{array} { | l | r | l | } \hline \text { Volume } & 900 & \text { units per month } \\\hline \text { Variable cost per unit } & \$ 10 & \text { per unit } \\\hline \text { Fixed costs } & \$ 14,000 & \text { per month } \\\hline\end{array}$$ A factory in Indonesia has offered to supply Tosh with ready-made units for a cost of $8 each.Assume that Tosh's fixed costs are unavoidable,but the company could use the vacated production facilities to earn an additional $5,000 of profit per month.In order to maximize operating income,Tosh should outsource.

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Definitions:

Right Atrium

The right upper chamber of the heart that receives deoxygenated blood from the body and pumps it to the right ventricle.

Left Ventricle

The chamber within the heart that receives oxygen-rich blood from the left atrium and pumps it to the body through the aorta, playing a crucial role in systemic circulation.

Right Ventricle

The lower right chamber of the heart that pumps deoxygenated blood to the lungs for oxygenation.

Decreased Immunity

A reduction in the body's ability to fight infections and diseases, which can be caused by factors such as malnutrition, illness, or certain medications.