Doro Fill Company Fabricates Automobiles A Factory in Indonesia Has Offered to Supply Doro Fill

question 62

True/False

Doro Fill Company fabricates automobiles.Each auto includes one wiring harness,which is currently made in-house.Details of the harness fabrication are as follows:
$$\begin{array} { | l | l | l | } \hline \text { Volume } & 300 & \text { units per month } \\\hline \text { Variable cost per unit } & \$ 6 & \text { per unit } \\\hline \text { Fixed costs } & \$ 15,000 & \text { per month } \\\hline\end{array}$$ A factory in Indonesia has offered to supply Doro Fill with ready-made units for a cost of $11 each.Assume that Doro Fill's fixed costs are unavoidable and that the company will not be able to use the excess capacity in any profitable manner.In order to maximize operating income,Doro Fill should not outsource.

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Definitions:

Mind-blindness

A condition often associated with autism spectrum disorders, characterized by difficulty in attributing mental states to oneself and others, leading to challenges in understanding what others are thinking or feeling.

Excessive Logic

Applying logical reasoning in an overextended way, sometimes at the expense of emotional understanding or social appropriateness.

Sensory Overload

A condition where one or more of the body's senses experiences over-stimulation from the environment, leading to feelings of discomfort or inability to focus.

Self-stimulatory Behavior

Repetitive or ritualistic movement, posture, or utterance, often seen in individuals with developmental disabilities.