Parton Company, a manufacturer of snowmobiles, is operating at 80% of plant capacity. Parton's plant manager is considering making the headlights now being purchased from an outside supplier for $12.80 each. The Parton plant has idle equipment that could be used to manufacture the headlights. The design engineer estimates that each headlight requires $4.45 of direct materials, $3.45 of direct labor, and $6.45 of manufacturing overhead. Forty percent of the manufacturing overhead is a fixed cost that would be unaffected by this decision. A decision by Parton Company to manufacture the headlights should result in a net gain (loss) for each headlight of: (CMA adapted) a) $1.03.
b) $(1.55).
c) $2.32.
d) $3.56.


Answer 1


The answer is: a


The Parton Company has a 'make or buy' decision. This decision involves analysing the incremental costs associated with each option. Incremental costs are costs incurred as a result of producing one more unit of a product. If the excess capacity can be utilised to produce the headlights at a lower cost than the cost of acquiring the headlights from an external supplier, then the company should produce the headlights.  

The Parton Company incurs $12.80 per headlight purchased from the external supplier. Added to this cost, are the existing costs of operating below plant capacity. If making the headlights in the manufacturing plant yields a positive contribution to fixed costs, then the Parton company should produce the headlights in the manufacturing plant.

By producing the headlights, the Parton company gains a contribution to fixed costs of $1.03 per headlight.

Foregone purchase costs from supplier:                          $12.80

Incurred costs (directly) from production:                        ($11.77)

Direct materials                                                                     ($4.45)

Direct Labour                                                                         ($3.45)

Manufacturing Overheads: $(6.45*0.6)                               ($3.87)

Net gain per headlight                                                            $1.03

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In Exodus, Chapter 20, the Lord, having presented himself as a thick cloud, seals the covenant by giving the Israelites a. the Ten Commandments. b. a sacrificial lamb. c. the Beatitudes. d. a vision of the Christ to come.


The correct answer is A.

hile giving her students a physics exam, Professor Thompson noticed that Jack, one of her students who has been struggling with the course material, appeared to be copying answers from Graydon, one of the best students in the class. She decides that she should compare their answers when the class period is over before deciding what to do about the situation. In which phase of the ethical decision-making process is Professor Thompson?


Answer: Gathering information

Explanation: Ethical decision making involves evaluating and choosing among different options in a way that is consistent with ethical principles. The best way to do this is to eliminate the unethical choices and choose the best alternative option.

There are various steps involved in this process. These are listed below:

1. Gather info

2. Define the ethical problem

3. Identify the parties that are affected

4. Identify the consequences

5. Identify the the principles

6. Evaluate the options

7. Choose the best option

8. Implement the decision

Professor Thompson has decided to wait until the class period ends, take both tests and compare their answers. After that she will decide what to do about the situation. Professor Thompson has thus entered the first step, which is to gather information. She doesn't want to jump to conclusions without gathering all the facts, so she is going to acquire as much info as she can about the situation before continuing. All these points add to the fact that Professor Thompson is entering the first step towards making the best ethical decision.


Leroy's credit card has an APR of 21%, calculated on the previous monthly balance, and a minimum payment of 2%, starting the month after the first
purchase. His credit card record for the last 7 months is shown in the table
How much of the initial purchase has Leroy paid off over the 7 months?
A. $310.06
B. $271.30
C. $44.93
D. $38.76


Based on the complete information, the amount of money from the initial purchase that Leroy has paid off over the 7 months is: C. $44.93.

What is APR?

APR is an acronym for annual percentage rate and it can be defined as a measure of an amount of money based on a yearly rate of interest, which a borrower must pay on a loan or credit card.

This ultimately implies that, the annual percentage rate would be calculated by dividing the interest rate by twelve (12).

However, the complete information which is required to calculate how much of the initial purchase that Leroy paid off is missing. Although, this can be calculated by using the following formula:

New balance =  Unpaid balance + finance charge + new charges

Note: Unpaid balance = Previous balance - Payments

Read more on APR here:





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Becky fenton has 80/160/90 automobile insurance coverage. if two other people are awarded $125,000 each for injuries in an auto accident in which becky was judged at fault, how much of this judgment would the insurance cover?


50000 because of the 80
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