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Tex's Manufacturing Company Can Make 100 Units of a Necessary

question 205

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Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs:   If Tex's Manufacturing Company purchases the component externally, $15,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying? A)  $120,000 B)  $85,000 C)  $115,000 D)  $100,000 If Tex's Manufacturing Company purchases the component externally, $15,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying?


Definitions:

Fallacy

A flaw in the process of thought that results in an argument being invalid or not solidly reasoned.

Affirming Consequent

A logical fallacy where one assumes that because the consequent is true, the antecedent must also be true; it's a flawed argument in conditional reasoning.

Antecedent

The conditional clause that represents the if-part in a conditional statement, where its truth logically necessitates the truth of the consequent.

Modus Ponens

A logical form of argument where, from two premises, one asserts a condition and the other affirms that condition, leading to a conclusion.

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