Power Systems Inc

question 113

Multiple Choice

Power Systems Inc. manufactures jet engines for the United States armed forces on a cost-plus basis. The production cost of a particular jet engine is shown below: If production of this engine was discontinued, the production capacity would be idle, and the supervisor would be laid off. The depreciation referred to above is for special equipment that would have no resale value and that does not wear out through use. When asked to bid on the next contract for this engine, the minimum unit price that Power Systems should bid is:

• A)$408,000
• B)$365,000
• C)$397,000
• D)$385,000

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Definitions:

Diploid Organism

An organism whose cells contain two sets of chromosomes, one set inherited from each parent, which is characteristic of most adult forms of life.

Spermatogenesis

The process of sperm cell development, occurring in the testes, through which spermatogonial stem cells differentiate into mature sperm.

Oogenesis

The process of egg formation in the ovaries.

Secondary Spermatocyte

A cell that originates from the division of a primary spermatocyte during spermatogenesis, later undergoing meiosis II to form spermatids.