Figure 13-2

question 138

Multiple Choice

Figure 13-2. ColorPro uses part 87A in the production of color printers.Unit manufacturing costs for part 87A are:
ColorPro uses 100,000 units of 87A per year.Filbert Company has offered to sell ColorPro 100,000 units of 87A per year for $12.Fixed overhead is unavoidable.
Refer to Figure 13-2.Which of the following is a qualitative factor that might affect ColorPro's decision?

• A)Filbert has an outstanding reputation for quality.
• B)Ordering from Filbert would give ColorPro a chance to see how well Filbert could meet JIT standards for ColorPro's other products.
• C)Filbert is known for the reliability of its products.
• D)Making the part in-house would help ColorPro avoid layoffs of direct and indirect labor.
• E)all of these

---

Definitions:

Resolving

The process of finding solutions to disputes, conflicts, or complex issues.

Venue

The geographic location in which a case is tried or a legal matter is to be decided.

Court

A governmental institution authorized to resolve legal disputes and administer justice in civil, criminal, and administrative matters.

Jurisdiction

The legal power or authority given to a court or other legal body to hear and decide cases.