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The fine Co. Currently produces all of the components for its one product; an electric pencil sharpener. The unit cost of manufacturing the motor...
25. The fine Co. Currently produces all of the components for its one product; an electric pencil sharpener. The unit cost of manufacturing the motor for the sharpener is:Direct materials $ 1.75Direct labor $1.65Variable overhead $0.75Fixed overhead $0.60The Co. Is considering the possibility of buying this motor from a subcontractor and has been quoted a prix sod $3.60 per uni. He relevant cost of manufacturing the motor to be considered in reaching the decision is:A. $4.75B. $4.15C. 3.55D. 4.05Q24: by choosing to go into business for himself, bob forgoes the possibility of getting a highly paid job with a large company. This is called:A. Sunk costB. Out of pocket costC. Opportunity costD. Joint costQ23: Obama Corp. is considering the purchase of a new machine costing $76,000 the machine would generate net cash inflows of $22.138 per yr. for 5 yrs. at the end of the 5 yrs the machine would have no salvage value l. Obamas cost of capital is 12%. Obama uses straight line depreciation.A. 12%B. 14%C. 16%D. 18%
