Bell's Shop can make 1,000 units of a necessary component with the following costs:
Direct Materials $24,000
Direct Labor 6,000
Variable Overhead 3,000
Fixed Overhead ?
The company can purchase the 1,000 units externally for $39,000. The unavoidable fixed costs are $2,000 if the units are purchased externally. An analysis shows that at this external price, the company is indifferent between making or buying the part. What are the fixed overhead costs of making the component?
a) $8,000
b) $6,000
c) $4,000
d) Cannot be determined
a) $8,000
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______________ must approve fundamental changes affecting the corporation before they can be implemented.
Fill in the blank(s) with the appropriate word(s).
Retailers play a role in making distribution simpler by reducing the number of transactions required by consumersto make a purchase and by making an assortment of goods available in one location. This is called _____
a. forward integration b. contact efficiency c. sorting d. reciprocity