Concierge Industries Manufactures 40,000 Components Per Year

question 98

Multiple Choice

Concierge Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows: An outside supplier has offered to sell the component for $12.75.
What is the effect on income if Concierge Industries purchases the component from the outside supplier?

• A) $30,000 increase
• B) $30,000 decrease
• C) $270,000 increase
• D) $270,000 decrease

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Definitions:

Physical Appearance

The outward aesthetic aspect of a person, including bodily shape, features, and overall appearance.

Athletic Competence

A person's ability and confidence in their sports and physical activities skills.

Collectivist

A cultural orientation emphasizing the group, community, or collective over the individual, prioritizing group goals over personal ones.

Individualistic

Characterized by independence and self-reliance, with an emphasis on personal freedom and achievement.