Atlantic Industries Manufactures 40,000 Components Per Year A)a $30,000 Increase
B)a $30,000 Decrease
C)a $270,000 Increase
D)a

question 79

Multiple Choice

Atlantic Industries manufactures 40,000 components per year.The manufacturing cost of the components was determined as follows: An outside supplier has offered to sell the component for $12.75.What is the effect on income if Atlantic Industries purchases the component from the outside supplier?
$$\begin{array} { l r } \text { Direct materials } & \$ 75,000 \\\text { Direct labour } & 120,000 \\\text { Variable manufacturing overhead } & 45,000 \\\text { Fixed manufacturing overhead } & 60,000 \\\text { Total } & \$ 300,000\end{array}$$

• A)a $30,000 increase
• B)a $30,000 decrease
• C)a $270,000 increase
• D)a $270,000 decrease

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Definitions:

Classical Conditioning

The process of learning by linking a naturally occurring stimulus with one introduced externally.

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A stimulus that initially has no effect but, when associated with an unconditioned stimulus, eventually triggers a conditioned response.

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A primate belonging to the simian infraorder, characterized by its tail and, in many species, its ability to climb trees.