Cotton Corp

question 19

Multiple Choice

Cotton Corp.currently makes 10,000 subcomponents a year in one of its factories.The unit costs to produce are: An outside supplier has offered to provide Cotton Corp.with the 10,000 subcomponents at an $84.50 per unit price.Fixed overhead is not avoidable.What is the maximum price Cotton Corp.should pay the outside supplier?

• A)$65.00
• B)$84.50
• C)$91.00
• D)$58.50

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Definitions:

Hematoma

A localized collection of blood outside the blood vessels, typically in liquid form within the tissue, resulting from trauma or surgery.

Arterial Blood Gases (ABGs)

A test that measures the concentrations of oxygen, carbon dioxide, and bicarbonate, as well as blood pH, in arterial blood, useful in assessing lung function and gas exchange.

Negligence

The failure to take proper care in doing something, leading to damage or harm to another.

Malpractice

Negligence, incompetence, or unethical behavior by a professional, especially in medicine, leading to harm or injury.