Figure 13-2

question 43

Multiple Choice

Figure 13-2. ColorPro uses part 87A in the production of color printers. Unit manufacturing costs for part 87A are:
ColorPro uses 100,000 units of 87A per year. Filbert Company has offered to sell ColorPro 100,000 units of 87A per year for $12. Fixed overhead is unavoidable.
-Refer to Figure 13-2. Which of the following is a qualitative factor that might affect ColorPro's decision?

• A) Filbert has an outstanding reputation for quality.
• B) Ordering from Filbert would give ColorPro a chance to see how well Filbert could meet JIT standards for ColorPro's other products.
• C) Filbert is known for the reliability of its products.
• D) Making the part in-house would help ColorPro avoid layoffs of direct and indirect labor.
• E) All of these.

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Definitions:

Waterfront

Land or an area that is adjacent to a body of water, such as a sea, lake, river, or ocean.

Blank

Empty or void; lacking markings, content, or details.

Woolly Mammoth

An extinct species of large prehistoric elephants, covered with long hair, that lived during the Ice Ages.

Arctic

refers to the polar region at the northernmost part of Earth, characterized by extreme cold, ice-covered seas, and unique ecosystems and wildlife.