Max Company Uses 20,000 Units of Part a in Producing

question 157

Multiple Choice

Max Company uses 20,000 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 not buying Part A from the supplier is

• A) $0.
• B) $20,000.
• C) $140,000.
• D) $160,000.

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Definitions:

Global Youth Market

The segment of the worldwide market that relates specifically to the interests, attitudes, and spending habits of young people.

Communication Method

The ways or techniques used to convey messages or information between individuals or groups.

French Canadians

Describes individuals of French descent who are citizens of Canada, primarily residing in the province of Quebec.

Population

The total number of individuals or entities in a specified area or of a particular group being studied or referred to.