Vest Industries Manufactures 40,000 Components Per Year

question 68

Multiple Choice

Vest 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 Vest Industries purchases the component from the outside supplier?

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

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Definitions:

Decapeptide

A peptide that consists of ten amino acids linked by peptide bonds, involved in various biological activities.

Edmund Degradation

Likely a mistyped or incorrect term; the correct term may be Edman Degradation, a method used for sequencing amino acids in a peptide.

N-terminus

The end of a protein or polypeptide chain that has a free amine group (-NH2).

Pentapeptide

A peptide made up of five amino acids linked together by peptide bonds, often involved in biological signaling processes.