Use the Information Below to Answer the Following Question(s)

question 54

Multiple Choice

Use the information below to answer the following question(s) :
Spahr Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 5,000 units, are as follows:

-Assume Spahr Company can purchase 5,000 units of the part from Allgood Company for $13.50 each, and the facilities currently used to make the part could be used to manufacture 5,000 units of another product that would have a $6 per unit contribution margin. If no additional fixed costs would be incurred, what should Spahr Company do?

• A) Make the new product and buy the part to earn an extra $2.50 per unit contribution to profit.
• B) Make the new product and buy the part to earn an extra $1.50 per unit contribution to profit.
• C) Continue to make the part to earn an extra $1.50 per unit contribution to profit.
• D) Continue to make the part to earn an extra $5.50 per unit contribution to profit.

Recognize the need for establishing standards and procedures for decision-making in project management.

Comprehend the importance of clarifying values in project management and conflict potential.

Grasp the significance of adjusting project management approaches based on the project’s complexity.

Learn the benefits and timing for project celebrations and the expression of appreciation.

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Definitions:

Incoherently

An adverb describing speech or thought that is difficult to understand due to lack of clarity or logical connection.

Distractibility

Distractibility refers to a reduced ability to concentrate on a task without being easily sidetracked by unrelated stimuli or thoughts.

Clinical Depression

A psychological condition marked by a continuously low mood or a lack of enthusiasm for activities, leading to considerable disruption in daily functioning.

Dehydration

A condition resulting from excessive loss of body water, affecting the body's normal functions.