HJManufacturing Produces 10,000 Units of a Part That Is Used

question 33

Essay

H.J.Manufacturing produces 10,000 units of a part that is used in their assembly process.The production costs are as follows:

H.J.Manufacturing has the option of purchasing these units from an outside supplier at $10.75 per unit.If the part is outsourced,40% of the fixed costs cannot be immediately converted to other uses.
a.Describe avoidable costs.What amount of the part's production costs is avoidable?
b.Should H.J.outsource the part? Why or why not?
c.What other items should H.J.consider before outsourcing any of the parts it currently manufactures?

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Definitions:

Neuropsychological Assessment

A comprehensive examination of cognitive and behavioral functions using tasks or tests that are specifically designed to measure brain malfunction.

Head Trauma

Physical injury to the head, which can lead to brain injury and its associated symptoms and complications.

Language Ability

Language ability encompasses the range of skills that allow individuals to communicate effectively, including speaking, understanding, reading, and writing in a particular language.

Sensory Motor Skills

Abilities that require coordination between the sensory system and the motor system, involving actions like grasping, moving, and manipulating objects.