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

question 65

Multiple Choice

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, $20,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying?

• A) $190,000
• B) $200,000
• C) $210,000
• D) $220,000

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Definitions:

Hyoid Bone

A U-shaped bone in the neck that supports the tongue and provides attachment for its muscles.

Short Bones

Bones that are as wide as they are long, providing support and stability with little to no movement, found in the wrist and ankles.

Vertebral Bones

The bones that make up the vertebral column or spine, providing structural support and protecting the spinal cord.

Tarsals

Tarsals are the seven short bones that make up the ankle and the rear portion of the foot, helping to distribute body weight in standing and walking.