Houser Corporation Manufactures a Part for Its Production Cycle Kingston Company Has Offered to Sell Houser Corporation 5,000 Units

question 80

Multiple Choice

Houser Corporation manufactures a part for its production cycle.The costs per unit for 5,000 units of this part are as follows: $$\begin{array} { l r } \text { Direct materials } & \$ 32 \\\text { Direct labour } & 40 \\\text { Variable overhead } & 16 \\\text { Fixed overhead } & 32 \\\text { Total } & \$ 120\end{array}$$ Kingston Company has offered to sell Houser Corporation 5,000 units of the part for $112 per unit.If Houser Corporation accepts Kingston Company's offer,total fixed costs will be reduced to $60,000.Which alternative is more desirable,and by what amount is it more desirable? Alternative Amount

• A) Make $20,000
• B) Make $120,000
• C) Buy $40,000
• D) Buy $100,000

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Definitions:

Counter-controlled

Refers to loops that execute a specific number of times, using a counter to track iterations.

While Loop

A control flow statement that allows code to be executed repeatedly based on a given Boolean condition.

Initial Expression

The starting point or condition often used in the initialization of a programming loop or construct.

For Loop

A For Loop is a control flow statement in programming that repeatedly executes a block of code a set number of times.