Hanson,Inc

question 108

Essay

Hanson,Inc.makes 1,000 units per year of a part called a prositron for use in one of its products.Data concerning the unit production costs of the prositron follow:

An outside supplier has offered to sell Hanson,Inc.all of the prositrons it requires.If Hanson,Inc.decided to discontinue making the prositrons,10% of the above fixed manufacturing overhead costs could be avoided.
Required:
a.Assume Hanson,Inc.has no alternative use for the facilities presently devoted to production of the prositrons.If the outside supplier offers to sell the prositrons for $850 each,should Hanson,Inc.accept the offer? Fully support your answer with appropriate calculations.
b.Assume that Hanson,Inc.could use the facilities presently devoted to production of the prositrons to expand production of another product that would yield an additional contribution margin of $50,000 annually.What is the maximum price Hanson,Inc.should be willing to pay the outside supplier for prositrons?

Understand the visual representation of different types of correlations in scatterplots.

Comprehend the concept of the coefficient of alienation and its calculation.

Grasp the impact of a third variable in partial correlation setups.

Understand the concept and use of mediating variables in correlation analysis.

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Definitions:

Grand Alliance

The coalition of nations, including the United Kingdom, Soviet Union, and United States, that allied to oppose the Axis powers during World War II.

Germany

A country in Central Europe known for its rich history, contributions to art, science, and philosophy, and its pivotal roles in both World War I and World War II.

Russia

The largest country in the world by area, spanning Eastern Europe and northern Asia, known for its rich history, cultural heritage, and as a major global political power.

Movie Theaters

Places where films are shown publicly on a large screen for entertainment, ranging from large multiplexes to small independent cinemas.