Use This Scenario to Answer the Following Questions

question 92

Multiple Choice

Use this scenario to answer the following questions.
A company must decide if it will make or buy an item it needs. The company can make the item for $10 per unit, but must invest $15,000 in tooling to achieve that capability. Alex Rogo has quoted a total price of $12 per unit to supply the quantity required (assume their fixed costs are included in the quoted price) .
-Refer to the instruction above. What does the company save for the year by selecting this low-cost option (for annual requirements of 5,000 units) ?

• A) $15,000
• B) $60,000
• C) $65,000
• D) $5,000

---

Definitions:

Nasal Cavity

The large air-filled space above and behind the nose in the middle of the face that warms, moistens, and filters air entering the body through the nose.

Bronchiole

Small airways in the lungs that extend from the bronchi and lead to the alveolar ducts.

Laryngopharynx

The lower part of the pharynx just below the oropharynx, facilitating the passage of food to the esophagus and air to the larynx.

Nasopharynx

The upper part of the throat located behind the nose, connecting the nasal cavity to the mouth and the esophagus.