A Firm at Present Manufacturers All the Components That Go $\quad$

question 17

Multiple Choice

A firm at present manufacturers all the components that go to make up its finished products. A salesman from a component supplier has just offered to provide the firm’s requirements for two components, the JC 100 at £7.75 each and the JC 200 at £2 each. If the firm buys in the components the capacity utilised at present would be unused. The firm currently manufactures 50 000 units of each component and the current costs of production are as follows:

What is the extra cost (EC) or saving (S) per unit if the company decides to buy in the component:

JC 100 (£) $\quad$ JC 200 (£)

• A) 2.25 (E
• C) \( \quad \)0.25 (
• B) 1.25 (
• S) \( \quad \)2.00 (E
• C) 1.75 (E
• C) \( \quad \)1.25 (
• D) 2.00 (
• S) \( \quad \)1.00 (

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Definitions:

Skeletal Muscles

Muscular tissue attached to bones, primarily responsible for voluntary movements and maintaining posture.

Visceral Smooth Muscle

Visceral smooth muscle is the type of muscle found in the walls of internal organs, responsible for involuntary movements such as digestion and blood vessel constriction.

Amygdala

Nucleus in the temporal lobe of the brain, amygdaloid nucleus; also called amygdaloid nuclear complex.

Temporal Lobe

A region of the cerebral cortex located beneath the temples, involved in processing auditory information and encoding memory.