Olive Corp Currently Makes 20,000 Subcomponents a Year in One

question 59

Multiple Choice

Olive Corp currently makes 20,000 subcomponents a year in one of its factories.The unit costs to produce are: An outside supplier has offered to provide Olive Corp with the 20,000 subcomponents at a $36 per unit price.Fixed overhead is not avoidable.What is the maximum price Olive Corp should pay the outside supplier?

• A)$32
• B)$36
• C)$40
• D)$44

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Definitions:

Oropharynx

The middle part of the throat behind the mouth, which includes the back one-third of the tongue, tonsils, and soft palate.

Nasopharynx

The upper part of the throat located behind the nose, an area that connects the nasal cavity to the throat and plays a role in respiration and speech.

Hypopharynx

The lower part of the pharynx that sits behind the larynx and connects to the esophagus, involved in the passage of food and air.

Laryngopharynx

The lower part of the pharynx, located near the larynx, that facilitates the passage of air to the lungs and food to the esophagus.