Krenski Corporation Has a Parts Division That Does Work for Other

question 16

Multiple Choice

Krenski Corporation has a Parts Division that does work for other Divisions in the company as well as for outside customers. The company's Equipment Division has asked the Parts Division to provide it with 10,000 special parts each year. The special parts would require £12.00 per unit in variable production costs.
The Equipment Division has a bid from an outside supplier for the special parts at £31.00 per unit. In order to have time and space to produce the special part, the Parts Division would have to cut back production of another part-the TW3 that it presently is producing. The TW3 sells for £35.00 per unit, and requires £13.00 per unit in variable production costs. Packaging and shipping costs of the TW3 are £3.00 per unit. Packaging and shipping costs for the new special part would be only £2.00 per unit. The Parts Division is now producing and selling 50,000 units of the TW3 each year. Production and sales of the TW3 would drop by 10% if the new special part is produced for the Equipment Division.
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The opportunity cost for the Parts Division is

• A)£9.50
• B)£2
• C)£10
• D)£12

Understand the role of psychologists and where they typically work.

Interpret the significance of case studies and their contributions to psychological research.

Apply psychological principles to explain human behavior in specific contexts.

Comprehend the scientific method as applied in psychological research.

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Definitions:

Brachiocephalic Artery

A major blood vessel originating from the aortic arch that supplies blood to the right arm and the head and neck.

Left Subclavian Artery

A major artery that arises from the aortic arch, supplying blood to the left arm and parts of the brain and chest.

Arteries

Blood vessels that carry oxygenated blood away from the heart to the body tissues, with the exception of the pulmonary arteries.

Capillaries

Tiny blood vessels that connect arteries and veins, facilitating the exchange of water, oxygen, carbon dioxide, and many other nutrients and waste substances between blood and tissues.