Max Company Uses 10,000 Units of Part a in Producing

question 53

Multiple Choice

Max Company uses 10,000 units of Part A in producing its products.A supplier offers to make Part A for $7.Max Company has relevant costs of $8 a unit to manufacture Part A.If there is excess capacity, the opportunity cost of buying Part A from the supplier is

• A)$0.
• B)$10,000.
• C)$70,000.
• D)$80,000.

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Definitions:

Endurance

The ability to sustain a physical or mental effort for a long period of time.

Assistive Devices

Assistive devices are tools and equipment designed to aid individuals in performing daily activities or tasks, enhancing their independence amidst disabilities or injuries.

Back Injuries

refer to damage or harm to the muscles, bones, or nerves in the back, often resulting from accidents, lifting, or sudden movements.

Manual Lifting

Refers to the process of moving or lifting objects by human effort, without the use of mechanical devices.