Use the Following Information to Answer the Questions Below

question 65

Multiple Choice

Use the following information to answer the questions below.
You currently make a part for old equipment at a cost of $20 / unit. The annual fixed cost for this equipment is $50,000. You have found an outside supplier who will make the part for $15 / unit if you will pay their annual fixed costs of $200,000 / year (see table) .

-Refer to the instruction above. For what range of output would you prefer to buy?

• A) 0 - 30,000 units per year
• B) 30,000 or more units per year
• C) 40,000 or more units per year
• D) 0 - 40,000 units per year

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Definitions:

Energy Independence

A nation's ability to meet its energy needs without relying on imports from other countries.

Clean Power Plan

A policy aimed at combating global climate change by regulating the carbon emissions from power plants, initially proposed by the Environmental Protection Agency (EPA) in the United States.

SARA

The Superfund Amendments and Reauthorization Act, a 1986 US federal law that amended the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) to manage and clean up hazardous waste sites.

Hazardous Substances

Materials that can pose a risk to health, safety, and the environment if not properly handled or contained.