The CJP Company Produces 10,000 Units of Item S10 Annually

question 41

Multiple Choice

The CJP Company produces 10,000 units of item S10 annually at a total cost of $190,000. The XYZ Company has offered to supply 10,000 units of S10 per year for $18 per unit.If CJP accepts the offer,$4 per unit of the fixed overhead would be saved.In addition,some of CJP'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.

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Definitions:

Resistance

The act of opposing or struggling against something, which can be manifest in various forms, including psychological and physical resistance.

Defense Maneuver

Psychological strategies employed by individuals to protect themselves from perceived threats or to manage stress and anxiety, often unconsciously.

Transference

Transference is a psychological phenomenon in which patients project feelings, desires, or expectations from past relationships onto their therapist during psychotherapy.

Interpretation Linkage

The process of connecting and relating one's interpretation of various elements or events, often to understand or communicate a broader meaning.