Fields Company Currently Manufactures One of Its Parts at a Cost

question 47

Essay

Fields Company currently manufactures one of its parts at a cost of $3.25 per unit. This cost is based on a normal production rate of 50,000 units. Variable costs are $2.10 per unit, fixed costs related to making this part are $40,000 per year, and allocated fixed costs are $45,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Fields is considering buying the part from a supplier for a quoted price of $2.80 per unit guaranteed for a three-year period. Should the company continue to manufacture the part, or should it buy the part from the outside supplier? Support your answer with analyses.

Recognize the characteristics that define ecological communities, including boundaries and species interactions.

Identify primary producers within ecological communities.

Understand the challenges in defining and separating communities due to varying boundaries.

Determine the number of trophic levels in a community based on the presence of specific consumers.

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Definitions:

Deep Vein Thrombosis

The formation of a blood clot within a deep vein, typically in the legs, posing risks of serious complications.

Calf Pain

Discomfort or pain in the lower leg, often resulting from muscle strains, injuries, or circulatory issues.

Pedal Pulses

Pulses felt at the feet, specifically the dorsalis pedis and posterior tibial arteries, indicative of blood circulation to the area.

Chronic Obstructive Pulmonary Disease

A long-term lung disease characterized by obstructed airflow from the lungs, leading to breathing difficulties.