Hudson Co. is currently producing 1,000 units of a necessary component part by incurring $54,400 in direct materials, $24,000 in
direct labor, $14,400 in variable overhead, and $16,000 in fixed overhead. Hudson could avoid $9,600 of fixed overhead if the component is purchased externally. Hudson wishes to minimize costs and would prefer to purchase the component. What is the maximum external price that Hudson should pay to acquire 1,000 units of the component? A : $99,200 B : $94,400 C : $102,400 D : $92,800
Hudson Co. is currently producing 1,000 units of a necessary component part by incurring $54,400 in direct materials, $24,000 in direct labor, $14,400 in variable overhead, and $16,000 in fixed overhead. Hudson could avoid $9,600 of fixed overhead if the component is purchased externally. Hudson wishes to minimize costs and would prefer to purchase the component.
A mutual fund is an investment vehicle that collects money from investors (usually small investors) and invests that money in purchasing and selling securities, e.g. bonds, stocks, etc. They are managed by a fund manager (usually not a person, but a company, in this case Larkan & Tokodo) that decides where to invest the funds. The value of a mutual fund is determined by the price of its shares that basically includes a fraction of the investment pool.
