A Firm Is Considering Whether to Continue to Buy a Particular

question 85

Multiple Choice

A firm is considering whether to continue to buy a particular component or to make the component themselves. There is no fixed cost associated with buying the component, but each component costs $17 to purchase. If the firm makes the component, it will incur a fixed cost of $5,000, but will be able to produce each component for $10. What is the break-even quantity?

• A) 500 units
• B) 7 units
• C) 714.3 units
• D) 294.1 units

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Definitions:

Integrated Teaching

An instructional approach that blends various subjects or areas of study to provide a more cohesive and comprehensive learning experience.

Collaborative Teaching

A pedagogical approach where two or more teachers work together to plan, instruct, and assess the same group of students, leveraging their individual expertise to enhance learning outcomes.

Individualized Teaching

Education strategies tailored to the learning needs, strengths, and interests of each individual student rather than using a one-size-fits-all approach.

Procedural Knowledge

Knowledge of how to perform tasks or activities, often demonstrated through actions rather than verbalized.