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

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