The Camel Company Produces 10,000 Units of Item Roto 454

question 67

Multiple Choice

The Camel Company produces 10,000 units of item Roto 454 annually at a total cost of $190,000.
$$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 20,000 \\\hline \text { Direct labor } & 55,000 \\\hline \text { Variable overhead } & 45,000 \\\hline \text { Fixed overhead } & 70,000 \\\hline \text { Total } & \$ 190,000 \\\hline\end{array}$$
The Yukon Company has offered to supply 10,000 units of Roto 454 per year for $18 per unit.If Camel accepts the offer,$4 per unit of the fixed overhead would be saved.In addition,some of Camel's facilities could be rented to a third party for $15,000 per year.What are the relevant costs for the "make" alternative?

• A) $160,000.
• B) $165,000.
• C) $175,000.
• D) $185,000.

Comprehend the influence of corporations and political groups on news content through various mechanisms.

Analyze the role of mass media in reinforcing or challenging social inequalities and stereotypes.

Evaluate the impact of mass media violence on different audiences.

Identify the various forms of media integration and their implications on industry control.

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Definitions:

Profit Centers

Segments or departments within a business that are responsible for generating profits and are evaluated on their profitability performance.

Cost Centers

Divisions or departments within an organization that do not directly generate revenue but incur costs, used for tracking and managing expenses.

Cost Price Approach

A method of valuation where items are recorded and kept in the inventory at their purchase or production cost.

Transfer Price

The price at which goods and services are sold between divisions within the same company.