Assume That the Compact Appliances Factory Space Freed Up by Purchasing

question 162

Multiple Choice

Assume that the Compact Appliances factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $12,000 profit. If Compact Appliances buys the part, how will its operating income be affected?

• A) $68,000 greater than if the company made the part
• B) $68,000 less than if the company made the part
• C) $178,000 greater than if the company made the part
• D) $92,000 greater than if the company made the part

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Definitions:

Laser Beam Alignment

A precision technique using laser beams to align components or machinery to exact specifications for optimal performance.

Spring Pin

A mechanical fastener used to secure two or more parts together, allowing for relative movement between the parts.

Air-actuated Grease Gun

A tool that uses compressed air to apply grease under pressure for lubrication purposes, providing a more efficient and controlled application.

Hand Grease Gun

A manual tool used for applying grease or lubricant to various mechanical components to ensure smooth operation and prevent wear.