Part I51 Is Used in One of Pries Corporation's Products

question 51

Multiple Choice

Part I51 is used in one of Pries Corporation's products.The company makes 18,000 units of this part each year.The company's Accounting Department reports the following costs of producing the part at this level of activity: An outside supplier has offered to produce this part and sell it to the company for $15.80 each.If this offer is accepted,the supervisor's salary and all of the variable costs,including direct labor,can be avoided.The special equipment used to make the part was purchased many years ago and has no salvage value or other use.The allocated general overhead represents fixed costs of the entire company.If the outside supplier's offer were accepted,only $26,000 of these allocated general overhead costs would be avoided. If management decides to buy part I51 from the outside supplier rather than to continue making the part,what would be the annual impact on the company's overall net operating income?

• A)Net operating income would decline by $81,800 per year.
• B)Net operating income would decline by $55,800 per year.
• C)Net operating income would decline by $119,800 per year.
• D)Net operating income would decline by $29,800 per year.

Interpret the legal aspects and considerations of preparing a will and the consequences of dying without a will.

Appreciate the ethical, legal, and social considerations surrounding end-of-life care, including advanced directives and living wills.

Identify the process and criteria for the disposition of a person's body and estate after death.

Analyze the cultural and societal shifts in attitudes towards death and dying, as illustrated by historical and sociological insights.

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Definitions:

Risk

The possibility of loss, damage, or an adverse outcome from an action or event.

Sale of Goods

Refers to the transaction of purchasing and selling tangible personal property.

Risk

The potential for losing something of value, either physically, financially, or emotionally, due to a particular action or event.

C.I.F. Contract

Stands for "Cost, Insurance, and Freight," a type of international shipping agreement where the seller pays for the cost of goods, insurance, and freight to a specified destination.