36. The time required to get equipment, tools, and materials ready to start production is referred to as

a. set-up time.

b. manufacturing lead time.

c. pass-through time.

d. none of the above.

37. Happy Company produces a part that has the following costs per unit:

Direct material	$ 7
Direct labor	4
Variable overhead	3
Fixed overhead	10
Total	$24

Sad Company can provide the part to Happy Company for $30 per unit. Happy Company has determined that 80 percent of its fixed overhead would NOT continue if it purchased the part. However, if Happy Company no longer produces the part, it can rent that portion of the plant facilities for $80,000 per year. Happy Company currently produces 15,000 parts per year. Which alternative is preferable and by what margin?

a.	Make-$20,000
b.	Make-$40,000
c.	Buy-$20,000
d.	Buy-$40,000

38. Roberta has the following information to evaluateher current salary of $75,000 versus total revenues of $130,000 and expenses of $80,000 from starting a new business. How much is the opportunity cost associated with staying at her current job?

1. $50,000

2. $75,000

3. $80,000

4. $130,000

5. $0