A company produces 300 microwave ovens per month, each of which includes one electrical circuit. The company currently manufactures the circuits in-house but is considering outsourcing the circuits at a contract cost of $30 each. Currently, the cost of producing circuits in-house includes variable costs of $26 per circuit and fixed costs of $6000 per month. Assume the fixed costs are unavoidable but that company could employ the vacated premises to earn rental income of $2600 per month. If the company outsources, monthly operating income will ________.
A) increase by $1400
B) decrease by $9000
C) decrease by $1200
D) increase by $16,800
A) increase by $1400
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Which of the following groups is more likely according to research to engage in self-leadership strategies?
a. Young people b. Older people c. Middle-aged people d. Elderly people
Consider the following two activities: (1 ) performing warranty work, cost: $60,000. The warranty cost of the most efficient competitor is $10,000. (2 ) Purchasing components, cost: $100,000 (5,000 purchase orders). A study reveals that the most efficient level would use 2,500 purchase orders and entail a cost of $55,000. What is the nonvalue-added cost?
A) $55,000 B) $60,000 C) $45,000 D) $100,000
Paul is explaining to upper-level management how converting to a four-day workweek can solve their budget woes by decreasing expenses. How will he most likely organize his presentation?
A) Geography/space B) Chronological C) Problem/solution D) Value/size
Courts may award damages called quantum meruit, which means
A) "as much as he deserves." B) "to the letter of the law." C) "let the buyer beware." D) "something for something."