45&46

QUESTION 45 ABC Company produces component parts for the items it produces and sells. If ABC were to purchase the component parts rather than continue to produce them, ABC could lease the production space to a third party. The revenue earned from the lease should be subtracted from the costs of making the component part when ABC is deciding between continuing to produce the part and purchasing the part. True False QUESTION 46 Find the contribution margin per unit based on the following Units sold - 1,000 Total variable cost - $5,000 Total revenue - $25,000 a. $25 b. $30 Oc. $20 Od. $22.50