Tish Corporation Produces a Part Used in the Manufacture of One

question 103

Multiple Choice

Tish Corporation produces a part used in the manufacture of one of its products.The unit product cost is $26, computed as follows: An outside supplier has offered to provide the annual requirement of 5, 000 of the parts for only $21 each.The company estimates that 75% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier.Assume that direct labor is an avoidable cost in this decision.Based on these data, the per-unit dollar advantage or disadvantage of purchasing from the outside supplier would be:

• A)$1 disadvantage
• B)$5 advantage
• C)$3 advantage
• D)$4 disadvantage

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Definitions:

Greenberg

A significant figure in the field of psychology, known for contributions to emotion-focused therapy.

Emotion Coach

A person who guides others in understanding and managing their emotions effectively, often used in parenting, therapy, or education.

Directive Interventions

Therapeutic techniques in which the therapist actively guides the client toward specific outcomes or ways of thinking.

Consciousness-Raising

A process aimed at increasing awareness about particular issues or aspects of one's self or society, often used in therapy and social movements.