Valuable Electronics Uses a Standard Part in the Manufacture of Different

question 49

Multiple Choice

Valuable Electronics uses a standard part in the manufacture of different types of radios manufactured by it.The total cost of producing 25,000 parts is $95,000,which includes fixed costs of $40,000 and variable costs of $55,000.The company can buy the part from an outside supplier for $3 per unit and avoid 20% of the fixed costs.
If Valuable Electronics decides to outsource the production of the part,how will it impact its operating profit?

• A) decreases of $12,000
• B) decreases of $20,000
• C) increases of $20,000
• D) increases of $12,000

Understand the concept of tolerance in mechanical dimensioning.

Identify and use abbreviations and symbols related to dimensioning and tolerancing.

Differentiate between different types of tolerances (e.g., unilateral, bilateral).

Understand the application of limit dimensioning and its importance in engineering drawings.

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Definitions:

Criminal Actions

Legal proceedings brought by the state against an individual or corporation for conduct considered offensive against society as a whole.

Fraud

Wrongful or criminal deception intended to result in financial or personal gain.

Scienter

A legal term referring to the knowledge of the wrongful nature of one's own act or omission.

Burden of Proof

The obligation to prove one's assertion or claim in a court of law.