Voyage Boat Company manufactures 100 luxury yachts per month. A compact media center is included in each yacht. Voyage Boat manufactures the media center in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $280, and the fixed costs are $42,000 per month. Aaron Dalton, the CEO, wishes to increase operating income by $3000. He has an offer from a foreign producer to provide the media centers at a contract cost of $350 per unit. The required savings in fixed costs in order to achieve his objective would be ________.
A) $3000
B) $7000
C) $10,000
D) $28,000
C) $10,000
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A) Secondary data B) Declared data C) Observed data D) Panel data
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If asked a question you don't know the answer to, it is often best to make up a short response
Indicate whether the statement is true or false.
Why is it a good idea to record a face-to-face interview with a reporter?
What will be an ideal response?