Scenario 2.4 a Company Is Considering Two Options for the Production of Production

question 69

Multiple Choice

Scenario 2.4
A company is considering two options for the production of a part needed downstream in the manufacturing process. Particulars are as follows:

-Use Scenario 2.4 to solve this problem. What does the company save each month by selecting this low-cost option compared to the higher-cost option (for monthly requirements of 3,000 units) ?

• A) $1,000
• B) $3,000
• C) $6,000
• D) Can't be determined with information given.

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