Manufacturing olein advertising likely to find first-line managers within an organization.
What do first line managers go by most of the time?Depending on the sector they operate in, first-line managers may also go by various names including assistant managers, shift managers, foremen, section managers, and office managers.
There are typically three layers of management: top managers, who are in charge of overall performance; middle managers, who answer to top managers and supervise lower-level managers; and first-line managers, who watch over staff to ensure that work is completed properly and on time.
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What is the study of proper business policies and practices regarding potentially controversial issues?
A
Ethics
B
Business Ethics
C
Company Values
D
Corporate Social Responsibility
The study of proper business policies and practices regarding potentially controversial issues is called Business Ethics.
The correct answer is B. Business Ethics.
Business ethics is the study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility, and fiduciary responsibilities. It is an important aspect of any business and is crucial for maintaining a positive reputation and preventing legal issues. In addition, business ethics can help protect employees, customers and other stakeholders from unethical practices.
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Caleb, who owns a successful business with two locations and a few international clients, was approached by a large organization about dramatically expanding his company. Caleb later told his wife that he is happy with his success, but he wants to stay small because if he decides to add new products, small companies: __________
Later, Caleb revealed to his wife that although he is pleased with his accomplishment, he wants to remain modest because if he decides to add more things,...
What is mean by revealed?
to divulge or demonstrate something unexpected or previously hidden: He was imprisoned for divulging information to the Russians. [ + that ] Her biography showed that she was not as wealthy as people had assumed. to divulge or demonstrate something unexpected or previously hidden: He was imprisoned for divulging information to the Russians. [ + that ] Her biography showed that she was not as wealthy as people had assumed. [+ word for question] He refused to say where he had concealed her Easter eggs.
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Caleb wants to stay small to avoid having to reduce prices and take on more staff and overhead costs, which could lead to a decrease in quality or customer service.
Why does Caleb wants to remain small?Caleb want to remain small since, if he decides to introduce new items, small businesses are sometimes unable to compete with larger firms that have access to greater resources and a broader consumer base. This may force Caleb to dramatically lower his rates in order to compete, which may not be viable for his firm in the long run. Furthermore, expanding his firm might imply hiring more employees and increasing overhead expenditures, which could strain his finances too thin. Furthermore, Caleb may not have the time or energy to run a larger company, which might result in a drop in quality or customer service. All of these factors make it difficult for Caleb to justify expanding his company.
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a firm recently updated its mission statement to emphasize the values of diversity and inclusion in its hiring practices. which type of pillar is this an example of? a. normative b. regulatory c. informal d. cognitive
The mission of business serves as declaration of organization's overarching goals. For instance, business might be dedicated to transforming world, aiding underprivileged, or establishing environmentally friendly business practices in particular sector.
What is a declaration?A declaration is a formal statement or announcement made by an individual or group. It is often used to make something official or to assert a certain position or belief. Declarations can come in many forms, such as legal declarations, political declarations, or personal declarations. For example, a country may make a declaration of war or a company may make a declaration of bankruptcy. Personal declarations can range from declarations of love to declarations of intent to run for public office. Declarations can have significant consequences, such as triggering legal proceedings, changing public policy, or influencing public opinion. Overall, declarations are a powerful tool for individuals and groups to communicate their beliefs and intentions to others.
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the average manufacturing overhead cost per unit tends to when the number of units produced fluctuate. multiple choice question. contain direct materials costs be more than direct materials cost per unit remain fairly constant vary from one period to the next
From one period to the next, the average manufacturing overhead cost per unit is prone to change.
Do manufacturing overhead costs include all manufacturing expenses excluding direct labor and direct materials?Any production expenses other than direct labor and supplies are referred to as manufacturing overhead. Justification: Factory overhead, indirect materials, and indirect labor comprise manufacturing overhead. Manufacturing overhead refers to expenses that cannot be clearly linked to each product manufactured.
Which document contains the expenses for the manufacturing overhead, labor, and materials applied to a job blank?The most crucial job costing document is the job cost sheet. To determine the overall expenses for the job, they compile all of the pertinent information about it, add up the costs of all direct materials, direct labor, and overhead, and then add those costs together.
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please refer to oscar's financial statements above. assume a constant debt- equity ratio, net profit margin, and dividend payout ratio, and further assume all of oscar's expenses, assets, and current liabilities vary directly with sales. what is the pro forma net fixed asset value for next year if sales are projected to increase by 7.5 percent?
a generic formula for estimating the pro forma net fixed asset value using the assumptions given Net Fixed Assets in Pro Forma = Previous Year Net Fixed Assets * (1 + Sales Growth Rate) - Depreciation Expense.
The prior year's net fixed assets may be seen in the company's financial statements' balance sheet. Depreciation expenditure is normally included on the income statement. The pro forma net fixed asset value for next year may be computed using the method above, assuming a 7.5% rise in sales and a steady debt-equity ratio, net profit margin, and dividend payout ratio. oscar's financial statements above. assume a constant debt- equity ratio, net profit margin, and dividend payout ratio, and further assume all of oscar's expenses, assets, and current liabilities vary directly with sales.
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if the federal trade commission found that a corporation committed a deceptive trade practice, what remedies may the ftc employ?
if the federal trade commission found that a corporation committed a deceptive trade practice, they may penalise, redress and give an order.
The Federal Trade Commission is responsible for verifying the information in each disclosure document that the franchisor sends to a potential franchisee. If the commission figures out that an entity has employed dishonest business procedures practices, it may then take into account a number of remedies to address the problem and protect consumers. Among the corrective actions, some include:
Order to refrain and cease: The commission has the authority to issue orders requiring the entity to stop using the misleading technique.
Customer redressal: The commission may order the entity to provide refunds or other forms of compensation to customers who were wronged by the deceptive practice.
Penalties: The commission is authorised to seek civil penalties from the entity, including fines and other monetary penalties.
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a(n) question allows respondents to express opinions, ideas, or behaviors in their own words without being forced to choose among alternatives that have been predetermined by a marketing researcher.
Open-ended, or long-form, questions permit respondents to provide answers in their very own words.
What kind of question lets in respondents to categorical opinions ideas and behaviors in their own words?A closed-ended question is made up of pre-populated answer preferences for the respondent to pick out from; whilst an open-ended question asks the respondent to supply feedback in their very own words.
Closed-ended questions are questions that can only be answered by means of selecting from a restricted variety of options, generally multiple-choice questions with a single-word answer , 'yes' or 'no', or a ranking scale (e.g. from strongly agree to strongly disagree).
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https://brainly.com/question/13321993#SPJ4what is the greatest impacts on large numbers of struggling farmers was a new deal program to
Farmers were relieved by the Agricultural Adjustment Administration (AAA), which paid them to reduce output, reduce surpluses, and raise prices for agricultural goods.
What results did the New Deal produce?
Increased government control over the economy and money supply, intervention to regulate prices and agricultural production, the start of the federal welfare state, and the development of trade were some of the longer-lasting changes brought about by the New Deal in the United States.
A The Federal Emergency Relief Administration supplied direct aid to the states so they could distribute it to unemployed people. During its brief existence, a work-relief programme offered jobs the following winter.
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What is business rule and relationship?
A business rule is a declaration that places restrictions on a certain feature of the database, such as the details of a field's field definition or the properties of a given relationship.
Business rules often specify explicit guidelines or requirements for how certain routine tasks should be carried out. Business regulations, for instance, might be: a system for processing bills that allows only particular managers to approve invoices up to a given amount. Business rules are collections of clauses that specify whether or not you may do something, as well as the standards and conditions under which you must decide. You must create business requirements in order to make it possible for business rules to be implemented and followed.
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Type the correct answer in the box. Spell all words correctly.
What is the criterion for companies to be covered under the EEOC laws?
Companies with
or more employees are covered under the EEOC laws.
If the subject of your complaint is age discrimination, the business is subject to the laws we uphold if it has twenty or more workers who have worked there for at least 15 to 20 calendar weeks.
What is business in plain English?A corporation is a place where people get together to work. People work in a business to produce and market goods and services. The goods and services are purchased by other individuals. The individual who recruits employees is the business owner.
What function does the company serve?A business's responsibility is to manufacture and market products and services in order to meet customer demands. Corporate social responsibility (CSR), according to Company News Daily, is "a business approach that entails participation in activities that help a society."
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A constraint in a decision is a restriction placed on ______to the problem at hand
A decision-making constraint is a limitation imposed on potential solutions to the issue at hand.
The required details about potential is mentioned in below paragraph.
Potential typically refers to a skill that is still being developed. The phrase is used in a wide range of disciplines, from physics to the social sciences, to describe things that are capable of changing in a number of ways, from the straightforward release of energy by objects to the realization of skills in individuals. In his works Physics, Metaphysics, Nicomachean Ethics, and De Anima, which is about the human psyche, the philosopher Aristotle incorporated this idea into his theory of potentiality and actuality,a pair of interconnected ideas he used to study motion, causation, ethics, and physiology.
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o'hara associates sells golf clubs, and with each sale of a full set of clubs provides complementary club-fitting services. a full set of clubs with the fitting services sells for $1,500. similar club-fitting services are offered by other vendors for $110, and o'hara generally charges approximately 10% more than do other vendors for similar services.estimate the stand-alone selling price of the club-fitting services using the adjusted market assessment approach.
The adjusted market assessment technique predicts a product's or service's stand-alone selling price based on the pricing of similar items or services in the market, adjusted for any variations.
We may estimate the stand-alone selling price of O'Hara's club-fitting services using this method by modifying the price of similar services given by other vendors, which is $110. Because O'Hara typically charges 10% more than other merchants, we may alter the price of $110 by adding 10%, or $11. As a result, the modified market assessment price for O'Hara's club-fitting services is as follows: $110 + $11 = $121 However, it is crucial to remember that this method only gives an estimate and may not accurately reflect the value of O'Hara's club-fitting services to their consumers.
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when changes are proposed in an organization, managers should take a holistic view of the organization and the
When changes are proposed in an organization, managers should take a holistic view of the organization and the potential impacts of the proposed changes.
This means considering how the changes will affect not just one aspect of the organization, but all aspects, including employees, customers, and stakeholders. By taking a holistic view, managers can better understand the potential benefits and drawbacks of the proposed changes and make more informed decisions about whether or not to implement them. Additionally, taking a holistic view can help managers identify potential unintended consequences of the proposed changes and take steps to mitigate any negative impacts. Overall, a holistic view is essential for effective change management in an
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what is the main reason that business organizations buy products?
Businesses buy things to use in ongoing operations and resell to customers, whereas consumers buy products for their personal use.
Why is corporate buying so important?
Businesses make purchases so they can provide customers with goods and services. As was previously stated, consumer buying behavior refers to individuals (or families) buying goods and services for their own use.
What does an organizational buy look like?
Purchasers within organizations come in a variety of forms. Retailers or wholesalers who buy products from one company and resell them to another are known as resellers. For instance, large grocery chains may buy products straight from manufacturers and resale them to end users.
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The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a dollar 5 tax per gallon on suppliers in this market, shifting the supply curve from S_0 to S_1. The quantity of ice cream consumed before the tax is gallons and the quantity consumed after the tax is gallons. 300,000;200,000 250,000;200,000 200,000;250,00 200,000;200,000
Option D. 250,000;200,000. The quantity of ice cream consumed before the tax is 250,000 gallons, and the quantity of ice cream consumed after the tax is 200,000 gallons.
The figure shows a market for gourmet ice cream. The original equilibrium price and quantity are $4 per gallon and 250,000 gallons, respectively. When the government imposes a tax of $5 per gallon on suppliers, it shifts the supply curve from S0 to S1. The new equilibrium price increases to $6 per gallon, and the new equilibrium quantity decreases to 200,000 gallons.
To calculate the quantity of ice cream consumed before and after the tax, we compare the quantity demanded at the original equilibrium price ($4 per gallon) with the quantity demanded at the new equilibrium price ($6 per gallon).
At $4 per gallon, the quantity demanded is 250,000 gallons, which is also the initial equilibrium quantity.
At $6 per gallon, the quantity demanded is 200,000 gallons, which is the new equilibrium quantity.
Therefore, the quantity of ice cream consumed before the tax is 250,000 gallons, and the quantity of ice cream consumed after the tax is 200,000 gallons.
Answer: 250,000;200,000
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The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a dollar 5 tax per gallon on suppliers in this market, shifting the supply curve from S_0 to S_1. The quantity of ice cream consumed before the tax is gallons and the quantity consumed after the tax is gallons.
A. 300,000;200,000
B. 200,000;250,000;
C. 200,000;200,000;
D. 250,000;200,000;
Which method assigns probabilities based on the assumption of equally likely outcomes?
Classical Approach determining probability with the assumption that all possible outcomes are equally likely.
What kinds of results are there?Organizational, team, and individual outcomes are the three different categories of results.
What characteristics define a successful outcome?Think carefully exactly what you can actually achieve given the groups your want to target and the range of your resources. Good outcome goals are clear, measurable, and practical. Develop the following results: • Your outcomes should specify what you hope will occur once your action is finished.
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what is the purpose of flowcharting in a typical information technology business? to communicate between the business side of a company and the it side to help only the technical side of the company to help only the business side of the company flowcharts are not used in an information technology business none of the above
The purpose of flowchart in a typical Information Technology business is to communicate between the business side of a company and the IT side. The correct option is a.
What is a flowchart?A flowchart is a type of diagram that represents a workflow or process. A flowchart can also be defined as a diagrammatic representation of an algorithm, a step-by-step approach to solving a task. The flowchart shows the steps as boxes of various kinds, and their order by connecting the boxes with arrows. This diagrammatic representation illustrates a solution model to a given problem.
Flowcharts are used in analyzing, designing, documenting or managing a process or program in various fields.
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if amazon prime deliveries consistently arrive to their customers within the promised 2-day delivery window, which performance dimension is amazon doing well at?
If Amazon Prime deliveries consistently arrive within the promised 2-day delivery window, then Amazon is doing well at the performance dimension of "reliability" or "timeliness".
This dimension measures how well a company delivers its products or services on time and as promised. By consistently delivering within the promised 2-day window, Amazon is demonstrating its ability to meet customer expectations and deliver a reliable and timely service.
Amazon Prime is a paid subscription service from Amazon which is available in various countries and gives users access to additional services otherwise unavailable or available at a premium to other Amazon customers. Services include same, one- or two-day delivery of goods and streaming music, video, e-books, gaming and grocery shopping services. In April 2021, Amazon reported that Prime had more than 200 million subscribers worldwide.
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sally rubber co recently raised capital through an initial public offering (ipo). its stock can now be purchased on the nyse. this company is referred to as:
Sally rubber co recently raised capital through an initial public offering (ipo). its stock can now be purchased on the nyse. this company is referred to as publicly traded company.
A corporation whose shareholders are entitled to a share of the firm's assets and income is known as a public company, sometimes known as a publicly traded company. Ownership of a public corporation is divided among the public shareholders through the free exchange of shares of stock on stock exchanges or over-the-counter (OTC) marketplaces. A public firm has the option of being or not being listed on a stock exchange, which makes it easier to trade shares. Public corporations that are over a particular size must be listed on an exchange in several jurisdictions. Even if a firm may have a large number of stockholders, it may not be publicly traded.
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One of the main complaints made by critics of employment tests is that these tests
A) fail to take the interests and personalities of the test takers into account.
B) cannot measure basic competencies.
C) may discriminate against certain groups.
D) take so long to conduct and evaluate that they slow down the selection process.
One of the main criticisms levelled against employment tests is that they might be biased against particular groups because they might not account for the workforce diversity.
What are the drawbacks of employment tests?Employment tests are a common method used by organisations to choose job candidates. However, because of their potential to oppress some communities, these exams have come under fire. Critics assert that job assessments might not take into consideration the variety of the workforce, including elements like linguistic and cultural disparities.
The test's actual content may also be unfair to particular groups or reflect the requirements of the job incorrectly. In some cases, the results of job tests may even have an unintentional discriminatory effect on some groups more than others. For this reason, it's essential for companies to carefully assess if their recruiting practises do not prejudice certain groups.
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antonio, an employee of a software company, has been trying hard to get promoted for a long time. he gives up on his efforts after two years and decides to remain satisfied with earning a decent living for his family. in terms of the erg theory of motivation, this exemplifies
In terms of the ERG theory of motivation, Antonio's decision to remain satisfied with earning a decent living for his family after giving up on his efforts to get promoted exemplifies "frustration-regression."
Who propounded the ERG theory of motivation?Clayton Alderfer redefined Maslow's need hierarchy theory of motivation to bring it in line with empirical research. His revised theory is known as the ERG theory of motivation.
This means that when individuals are unable to satisfy their higher-level needs, they may focus on satisfying their lower-level needs instead. In this case, Antonio's failure to achieve his growth needs (promotion) led him to focus on his existing needs earning a decent living.
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doritos is running a commercial contest for the superbowl this year. how does it work?
Typically, Doritos runs a commercial contest leading up to the Super Bowl each year, although it is possible that they may not run one every year.
The general idea behind the contest is that consumers are invited to create their own Doritos commercial, and the winning ad will be aired during the Super Bowl, which is one of the most-watched television events of the year.
Here's how the contest has worked in the past:
Doritos announces the contest and sets a deadline for submissions.
Consumers create and upload their 30-second Doritos commercial to the contest website.
The public votes on the commercials to determine the finalists.
A panel of judges selects the winning commercial from the finalists.
The winning commercial is aired during the Super Bowl, and the creator of the ad usually receives a cash prize.
It's worth noting that the specific details of the contest may vary from year to year, so it's a good idea to check the official contest rules and guidelines for the most up-to-date information.
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Doritos is running a commercial contest for the super bowl this year. how does it work?
fly high drones, a corporation owned and managed by volunteers, delivers medical supplies to remote populations in africa. its focus is not on earning a surplus but on serving the community. fly high drones is an example of a
Fly High Drones, a corporation owned and managed by volunteers, delivers medical supplies to remote populations in Africa. Its focus is not on earning a surplus but on serving the community. Fly High Drones is an example of a nonprofit corporation. Option 1 is correct.
A nonprofit corporation is any legal body formed under the laws of its jurisdiction for objectives other than profit for its owners or shareholders. Depending on the regulations of the jurisdiction, a nonprofit company may seek formal registration as such, as well as be taxed and handled differently than for-profit businesses.
A public-benefit nonprofit organization is a form of nonprofit corporation established by a state government and founded by like-minded persons primarily or entirely for social, educational, recreational, or philanthropic reasons. In the law, public-benefit nonprofit organizations differ from mutual-benefit nonprofit corporations in that they are established for the general public benefit rather than the advantage of their members. They are also legally separate from religious corporations.
The complete question is:
Fly High Drones, a corporation owned and managed by volunteers, delivers medical supplies to remote populations in Africa. Its focus is not on earning a surplus but on serving the community. Fly High Drones is an example of a:
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Consider jasper’s balance sheet. what is the total value of jasper’s assets? what is the total value of jasper’s liabilities?
The entirety of your cash, the things you've bought, plus the money your clients owe you make up your assets. The total amount of money you owe creditors is your liabilities.
The whole value of the assets you own less the total amount of liabilities you owe equals your owner's equity, net worth, or capital.
Total liabilities are computed as the total of current liabilities and non-current liabilities, such as wages and interest due (e.g., long-term debt).
The total of all current and long-term liabilities from the balance sheet is known as the book value of total liabilities ($). Sales ($) = Income (including other income) from the Income Statement.
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Answer:
assets: $15,800
liabilities: $4,400
Explanation:
is ensuring that project resources are not overallocated. a. resource leveling b. resource constraining c. resource starving d. resource management e. resource addition
The correct answer is e. resource addition is ensuring that project resources are not overallocated.
When a resource is scheduled for more work than they can reasonably complete in their regular work capacity, they are said to be overloaded. The resource calendar and the resource availability parameters in the Resource Information dialogue box establish a resource's work capacity. Using the resource management strategy of resource levelling, teams may more effectively adapt resource limitations and anticipate project durations. It aids in preventing bad project planning, which frequently causes unforeseen delays, overworked team members, and expense overruns.
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a company's marginal cost function is where x is the number of units. find the total cost of the first 49 units (of increasing production from x
The marginal cost function is
12 C(x) =
Integrating on both sides with respect to x
from x = 0 to x = 49
49 -49 $* C(x= C(x)dx 12 dx = 0 0
C(x) 20 = 12(2x): C x= = - =1 49 x=0
C(49) - C(0) = 24(V49 - V0) =
C(49) = 24(7-O =
C(49)= 168
Total cost = $ 168
Marginal Cost is the cost to produce each unit, and we want to find the total cost of producing the first 49 units. Generally speaking, if the cost function is represented by C(x), the marginal cost function is the derivative, C'(x). Therefore, if we want to find the total cost function from the marginal cost function we need to integrate. And since we are looking specifically at the total cost to produce the first 49 units
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true or false: assume a stock is currently trading at $50 per share. a momentum trader who wants to buy the stock if it breaks resistance at $52 should submit a limit order to buy at $52.
assume a stock is currently trading at $50 per share. a momentum trader who wants to buy the stock if it breaks resistance at $52 should submit a limit order to buy at $52. the statement is true.
Stocks are units of ownership in a company that represent a claim on part of the company's assets and earnings. When an individual buys a stock, they effectively become a partial owner of the company and are entitled to a portion of its profits. Stocks are traded on stock exchanges, such as the New York Stock Exchange (NYSE) and the NASDAQ, and their prices are determined by supply and demand. Companies issue stocks to raise capital for their operations, and individuals and institutions can purchase stocks as a form of investment. Owning stocks can be a way to build wealth over the long-term, but it also comes with the risk that the stock price may decrease.
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for companies that are too small to hire separate employees to do all the different functions needed for internal controls, the key to good internal controls is .
For companies that are too small to hire separate employees to do all the different functions needed for internal controls, the key to good internal controls is segregation of duties.
Segregation of duties involves separating job functions among different individuals to reduce the risk of errors or fraud. For example, a small company may have one employee handle all of the bookkeeping, but they can still implement segregation of duties by having a different employee handle cash transactions and another employee handle accounts payable and receivable. By separating job functions in this way, a company can ensure that no single person has complete control over a transaction, reducing the risk of errors or fraud going undetected.
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For companies that are too small to hire separate employees to do all the different functions needed for internal controls, the key to good internal controls is___________?
which step of business process management allows managers to create a continually improving process?a. Step 3: process executionb. Step1: process designc. Step 5: proses optimizationd. Stepp 4: process monitoring
Step 5: process optimization is the step of business process management that allows managers to create a continually improving process. Option C is correct.
This step involves analyzing data from the process and identifying opportunities for improvement. Once opportunities are identified, changes are made to the process, and then the process is tested to see if the changes have had the desired effect.
The process is then monitored to ensure that the changes are sustainable and that the process continues to perform well over time. By continually optimizing the process, managers can ensure that their organization is operating efficiently and effectively.
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troy engines, ltd., manufactures a variety of engines for use in heavy equipment. the company has always produced all of the necessary parts for its engines, including all of the carburetors. an outside supplier has offered to sell one type of carburetor to troy engines, ltd., for a cost of $39 per unit. to evaluate this offer, troy engines, ltd., has gathered the following information relating to its own cost of producing the carburetor internally: per unit 21,000 units per year direct materials $ 18 $ 378,000 direct labor 11 231,000 variable manufacturing overhead 3 63,000 fixed manufacturing overhead, traceable 3 * 63,000 fixed manufacturing overhead, allocated 6 126,000 total cost $ 41 $ 861,000 *one-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). required: 1. assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 21,000 carburetors from the outside supplier?
Based on this analysis, it appears that there is a financial advantage of $42,000 to buying 21,000 carburetors from the outside supplier.
To determine the financial advantage or disadvantage of buying 21,000 carburetors from the outside supplier, we need to compare the cost of producing the carburetors internally with the cost of buying them from the outside supplier.
Cost of producing 21,000 carburetors internally:
Direct materials = $18 x 21,000 = $378,000
Direct labor = $11 x 21,000 = $231,000
Variable manufacturing overhead = $3 x 21,000 = $63,000
Fixed manufacturing overhead (traceable) = $3 x 21,000 = $63,000
Fixed manufacturing overhead (allocated) = $6 x 21,000 = $126,000
Total cost of producing 21,000 carburetors internally = $861,000
Cost of buying 21,000 carburetors from the outside supplier = $39 x 21,000 = $819,000
The financial advantage (disadvantage) of buying 21,000 carburetors from the outside supplier is calculated as follows:
Financial advantage (disadvantage) = Cost of producing 21,000 carburetors internally - Cost of buying 21,000 carburetors from the outside supplier
= $861,000 - $819,000
= $42,000
However, this analysis assumes that there is no alternative use for the facilities that are currently being used to produce the carburetors. If there is an alternative use for these facilities that generates a higher return, then the financial advantage of buying from the outside supplier may be reduced or eliminated.
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