The Riverbed Company manufactures 1,488 units of a part that could be purchased from an outside supplier for $14 each. Riverbed’s costs to manufacture each part are as follows:

Direct materials $3
Direct labor 3
Variable manufacturing overhead 3
Fixed manufacturing overhead 9
Total $18

All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses.

What are the alternatives for Fresh Foods?

Destablishing a distribution network

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.