10. Phelps Industries is a multi-product company that currently manufactures 30,000 units of part ST35 each month for use in production of its products. The facilities now being used to produce part ST35 have a fixed monthly cost of $150,000 and a capacity to produce 35,000 units per month. If Phelps were to buy part ST35 from an outside supplier, the facilities would be idle, but its fixed costs would continue at 40% of their present amount. The variable production costs of Part ST35 are $11 per unit If Phelps Industries continues to use 30,000 units of part ST35 each month, it would realize a financial advantage by purchasing this part from an outside supplier only if the supplier's unit price is less than: A. $11.00 B. $14.00 C. $13.00 D. $16.00 E. None of the above

A. economic resources to be used or turned into cash within one year. b. reports assets, liabilities, and stockholders' equity. c. decrease assets; increase liabilities and stockholders' equity. d. increase assets; decrease liabilities and stockholders' equity. e. an exchange or event that has a direct and measurable financial effect. f. accounts for a business separate from its owners. g. the principle that assets should be recorded at their original cost to the company. h. a standardized format used to accumulate data about each item reported on financial statements. i. the basic accounting equation. j. the two equalities in accounting that aid in providing accuracy. k. the account credited when money is borrowed from a bank using a promissory note. l. cumulative earnings of a company that have not yet been distributed to the owners. m. every transaction has at least two effects. n. amounts presently owed by the business. transaction, separate entity assumption, balance sheet, liabilities, assets, current assets, notes payable, duality of effects, retained earnings, debit.