Multiple Choice
Use the following scenario to answer the questions below.
A company must decide if it will make or buy an item it needs.The company can make the item for $10 / unit,but must spend $15,000 per year in tooling to do so.An outside firm has quoted a total price of $12 / unit to supply the quantity required.
-Refer to the instruction above.What does the company save for the year by selecting this low-cost option (for annual requirements of 5,000 units) ?
A) $5,000
B) $15,000
C) $65,000
D) can't be determined with information given
Correct Answer:
Verified
Correct Answer:
Verified
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