Harris Company currently produces a component that it uses in making some of its products. Harris has calculated the following costs for making the component: Unit-level costs Materials$20 Labor 28 Overhead 2 Allocated facility-level costs 10 Total cost$60 Harris is considering outsourcing the component. A supplier has offered to sell the component to Harris for $52 each. Harris needs 8,000 units each year.Required:Should Harris outsource the component? Support your answer with appropriate computations.
What will be an ideal response?
| Relevant cost to make (per unit) | |||
| Materials | $ | 20 | |
| Labor | 28 | ||
| Overhead | 2 | ||
| Total cost to make | $ | 50 | |
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Deepwater Dredging represents that it has corporate status to Estuary Marina when in fact Deepwater has not incorporated. The parties sign a contract that Deepwater does not perform. Estuary files a suit for breach. The court will likely hold that Deepwater is A) a corporation by estoppel
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Validity is necessary but not sufficient for generalizability.
Answer the following statement true (T) or false (F)
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