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:

Douche

Vaginal irrigation, which can be used to administer vaginal medication in liquid form.

Diluent

A liquid used to dissolve and dilute another substance, such as a drug.

Sublingual Medication

Drugs that are administered by being placed under the tongue for absorption through the mucous membranes into the bloodstream for faster action.

Oral Route

A method of drug administration where medication is taken through the mouth.