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Exhibit 22-4 Lauria Electronics Has Excess Capacity That Could Be

Question 30

Multiple Choice

Exhibit 22-4 Lauria Electronics has excess capacity that could be used to make 2,000 antennas for the cell phones that the company produces. The following cost figures are available:
Exhibit 22-4 Lauria Electronics has excess capacity that could be used to make 2,000 antennas for the cell phones that the company produces. The following cost figures are available: Lauria can buy the antennas from an outside supplier for $10.50. Refer to Exhibit 22-4. Given the data above, if Lauria has idle facilities with no alternative use, it should: A) Buy the antennas from the outside supplier B) Make the antennas C) Lauria would be equally well off either buying or making the antennas D) The answer cannot be determined Lauria can buy the antennas from an outside supplier for $10.50.
Refer to Exhibit 22-4. Given the data above, if Lauria has idle facilities with no alternative use, it should:


A) Buy the antennas from the outside supplier
B) Make the antennas
C) Lauria would be equally well off either buying or making the antennas
D) The answer cannot be determined

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