$$\text { Use the following information for questions } 37 - 38 \text {. }$$

question 42

Multiple Choice

$$\text { Use the following information for questions } 37 - 38 \text {. }$$
Eminen Music produces 60,000 blank CDs on which to record music.The CDs have the following costs:
$$\begin{array} { l l } \text { Direct Materials } & \$ 11,000 \\\text { Direct Labour } & 15,000 \\\text { Variable Overhead } & \mathbf { 3 } , 000 \\\text { Fixed Overhead } & 7,000\end{array}$$
-None of Eminem's fixed overhead costs can be reduced, but another product could be made that would increase profit contribution by $4,000 if the CDs were acquired externally.If cost minimization is the major consideration and the company would prefer to buy the CDs, what is the maximum external price that Eminem would be willing to accept to acquire the 60,000 units externally?

• A)$36,000
• B)$32,000
• C)$33,000
• D)$40,000

---

Definitions:

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the body's tissues and returns carbon dioxide from the tissues back to the lungs.

Sickle Cell Anemia

A hereditary blood disorder characterized by abnormal hemoglobin, resulting in some red blood cells assuming an abnormal sickle shape.

B-Thalassemia Major

A severe blood disorder caused by a genetic mutation, leading to reduced production of hemoglobin and potentially severe anemia.

Hemophilia

A medical condition, usually inherited, in which the ability of the blood to clot is severely reduced, causing the sufferer to bleed severely from even a slight injury.