Manor,IncCurrently Manufactures 1,000 Subcomponents Per Month in One of Its

question 15

Multiple Choice

Manor,Inc.currently manufactures 1,000 subcomponents per month in one of its factories.The unit costs to produce the subcomponents are: The unit costs to produce are:
Manor is considering purchasing the subcomponents from an outside supplier,who normally charges $300 per unit.The supplier also has an "Exclusive Buyer's Club" which costs $30,000 per month to join,but whose members can purchase the subcomponents for $250 per unit.Fixed overhead is not avoidable.How many units would Manor need to order per month to make it worth it to join the "Exclusive Buyer's Club"?

• A)800
• B)1,000
• C)1,200
• D)1,500

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Definitions:

Survey Method

A research technique that involves collecting data from a sample of individuals through their responses to questions.

Questionnaires

A research instrument consisting of a series of questions for the purpose of gathering information from respondents, often used in surveys and studies.

Interviews

A method of collecting information through direct conversation, typically used for research or employment selection purposes.

Experimental Research Method

A research methodology that tests hypotheses and establishes cause-effect relationships by manipulating independent variables and observing their effects on dependent variables.