A Business Is Operating at 90% of Capacity and Is

question 76

Multiple Choice

A business is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $15 per unit. The unit cost for the business to make the part is $20, including fixed costs, and $12, not including fixed costs. If 30,000 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it?

• A) $150,000 cost increase
• B) $ 90,000 cost decrease
• C) $150,000 cost increase.
• D) $ 90,000 cost increase.

Understand the calculation of monthly interest rates and the effective rate on loans.

Develop proficiency in completing loan amortization schedules for different loan scenarios.

Gain insights into the impact of payment timings on finance charges in credit transactions.

Ability to solve for effective interest rates following different loan repayment schedules.

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Definitions:

Nonparametric Techniques

Statistical methods that do not assume a specific distribution of the data, often used when data does not meet the assumptions of parametric tests.

Population Parameters

Characteristics or measures that describe aspects of a population, such as its mean, variance, or standard deviation.

Wilcoxon Rank-sum Test

A non-parametric statistical test used to compare two independent samples to determine if they come from the same distribution.

Independent Samples

Two or more groups of samples that are not related or connected in any way in the context of an experiment or study.