Olive Corp. currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unitDirect materials $12Direct labor 8Variable manufacturing overhead 12Fixed manufacturing overhead 8Total unit cost $40An outside supplier has offered to provide Olive Corp. with the 20,000 subcomponents at a $36 per unit price. Fixed overhead is not avoidable. What is the maximum price Olive Corp. should pay the outside supplier?
A. $40
B. $44
C. $32
D. $36
Answer: C
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SeaFood Family markets its frozen seafood products to the domestic United States market and to several Central American countries. SeaFood Family recently had a surplus of products. Management decided to maintain prices in the U.S
market but drastically cut prices in the Central American markets in order to reduce excess supply. SeaFood Family would most likely be accused of pirating. Indicate whether the statement is true or false
________ occurs when the harm is other than the financial harm of an unsatisfactory market exchange.
What will be an ideal response?
Among the promotional mix elements, __________ changes the least around the world.
Fill in the blank(s) with the appropriate word(s).
Two methods of estimating uncollectible receivables are ________
A) the allowance method and the amortization method B) the aging-of-accounts-receivable method and the percent-of-sales method C) the gross-up method and the direct write-off method D) the direct write-off method and the percent-of-completion method