The salesperson for the big apple sign corporation was trying to get a hardware storeowner to buy a new kind of advertising tool called floor graphics—an opaque vinyl film that applies directly to the floor, is easy to remove, and can be used to promote in-store specials. since the storeowner has purchased advertising before—just not this particular kind of advertising—this is an example of a situation.
a) derived rebuyb) straight-rebuyc) derived-demandd) value-addede) modified rebuy

Make or buy eastside company incurs a total cost of $120,000 in producing 10,000 units of a component needed in the assembly of its major product. the component can be purchased from an outside supplier for $11 per unit. a related cost study indicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. a. should eastside buy the component if it cannot otherwise use the released capacity? present your answer in the form of differential analysis. use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. cost from outside supplier $answer variable costs avoided by purchasing answer net advantage (disadvantage) to purchase alternative $answer b. what would be your answer to requirement (a) if the released capacity could be used in a project that would generate $50,000 of contribution margin? use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers.