Yankton Industries Manufactures 20,000 Components Per Year

question 87

Multiple Choice

Yankton Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows: An outside supplier has offered to sell the component for $23.50.
What is the effect on income if Yankton Industries purchases the component from the outside supplier?

• A) $20,000 increase
• B) $20,000 decrease
• C) $80,000 decrease
• D) $80,000 increase

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Definitions:

Anesthesia

A medical procedure involving drugs that result in a temporary loss of sensation or awareness, used primarily during surgical operations.

Postoperative Exercises

Physical activities recommended after surgery to aid in recovery, promote healing, and prevent complications.

Pain Scale

A tool used in medical assessments to measure and quantify pain intensity, facilitating effective pain management strategies.

Femoral Peripheral Nerve Block

A type of regional anesthesia involving an injection of medication near the femoral nerve to block pain in a specific area of the leg.