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Chapter 11 9) Which are risks of outsourcing the production? A) unpredikctable quality B) unreliable delivery C) unscheduled price increases D) All these answers are
Chapter 11 9) Which are risks of outsourcing the production? A) unpredikctable quality B) unreliable delivery C) unscheduled price increases D) All these answers are correct I point 10) An equipment purchased last year is an example of a(n) A) sunk cost B) relevant cost C) differential cost D) avoidable cost Ipoint 2 points 11)A recent college graduate has the choice of buying a new car for $20,000 or investing the money for Osan with a 5% expected annual rate of retum. If the graduate decides to purchase the car, the best estimate of the opportunity cost of that decision is: A) $6,000 B) $5,000 C)$100,000 D) zero since there is no opportunity cost for this decision Show your work: Answer the following questions using the information below: Sky Corporation has a capacity to produce 550,000 units and currently produce 460,000 units. Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows: 3 points S 100,000 Direct materials Direct labor 150,000 50,000 80,000 10,000 $390.000 Variable factory overhead Fixed factory overhead (plant lease and insurance) Delivery Total costs 12) Gleen Company has offered to sell 10,000 units of the same part to Sky Corporation for $36 per unit. Assuming there is no other use for the facilities, Company should: A) buy the part, as this would save $5 per unit B) buy the part, as this would save $4 per unit C) make the part, as this would save the company $50,000 D) make the part, as this would save $3 per unit E) none of these questions are correct Show your work
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