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Liffick Corporation Is a Specialty Component Manufacturer with Idle Capacity

question 9

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Liffick Corporation is a specialty component manufacturer with idle capacity. Management would like to use its extra capacity to generate additional profits. A potential customer has offered to buy 6,200 units of component VFG. Each unit of VFG requires 8 units of material C79 and 6 units of material X70. Data concerning these two materials follow: Liffick Corporation is a specialty component manufacturer with idle capacity. Management would like to use its extra capacity to generate additional profits. A potential customer has offered to buy 6,200 units of component VFG. Each unit of VFG requires 8 units of material C79 and 6 units of material X70. Data concerning these two materials follow:   Material C79 is in use in many of the company's products and is routinely replenished. Material X70 is no longer used by the company in any of its normal products and existing stocks would not be replenished once they are used up. What would be the relevant cost of the materials, in total, for purposes of determining a minimum acceptable price for the order for product VFG? A) $528,551 B) $523,280 C) $476,350 D) $484,455 Material C79 is in use in many of the company's products and is routinely replenished. Material X70 is no longer used by the company in any of its normal products and existing stocks would not be replenished once they are used up. What would be the relevant cost of the materials, in total, for purposes of determining a minimum acceptable price for the order for product VFG?

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Definitions:

Family Constellations

A therapeutic method that explores the influence of family dynamics and ancestral ties on an individual's current psychological and emotional well-being.

Organ Inferiority

A concept in Adlerian psychology referring to the perceived weakness of a bodily organ or system, which influences personality and behavior as one attempts to compensate for it.

Individual Inferiority

Feelings of being less capable or inferior compared to others, often discussed in the context of Adlerian psychology.

Social Interest

A concept developed by Alfred Adler, signifying an individual's inclination towards being cooperative, contributing to the welfare of others, and feeling part of a larger community.

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