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

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Definitions:

Free Radical Bromination

A chemical reaction process whereby bromine radicals (Br.) selectively react with C-H bonds in hydrocarbons to form brominated products.

Methane

The simplest alkane, a colorless, odorless gas (CH4), that is the main component of natural gas and a potent greenhouse gas.

Transition State

A high-energy state during a chemical reaction that represents the point of highest energy through which reactants must pass before forming products.

Resonance Stabilized Radical

A radical species whose stability is enhanced by the distribution of its unpaired electron over multiple atoms via resonance.