Regis Company makes the plugs it uses in one of its products at a cost of $36 per unit. This cost includes $8 of fixed overhead. Regis needs 30,000 of these plugs annually, and Orlan Company has offered to sell them to Regis at $33 per unit. If Regis decides to purchase the plugs, $60,000 of the annual fixed overhead will be eliminated, and the company may be able to rent the facility previously used for manufacturing the plugs.
If Regis Company purchases the plugs but does not rent the unused facility, the company would:
A) save $3.00 per unit.
B) lose $6.00 per unit.
C) save $6.00 per unit.
D) lose $3.00 per unit.
Self-reflection is a key component of process improvement as both a project manager and a leader of technical teams. Look back on your journey and identify where you may have had your biggest setback and where you may have excelled. What recommendations can you provide to yourself for how to better handle similar situations in the future?
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