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

question 142

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 buying Part A from the supplier is

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

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Definitions:

Sensory Registers

Memory stores that briefly hold sensory information from the environment, such as sights and sounds, before it is processed further or forgotten.

Auditory and Visual

Pertaining to the senses of hearing and sight, often in the context of learning or perception.

Echo

A phenomenon where sound waves are reflected off surfaces and heard again.

Sensory Registers

The primary systems in the brain that temporarily store information received from the senses for a short duration.