Exhibit 22-4 Lauria Electronics Has Excess Capacity That Could Be

question 95

Multiple Choice

Exhibit 22-4 Lauria Electronics has excess capacity that could be used to make 2,000 antennas for the cell phones that the company produces. The following cost figures are available:
Lauria can buy the antennas from an outside supplier for $10.50.
Refer to Exhibit 22-4. Given the data above, Lauria would:

• A) Save $1,400 by making the antennas
• B) Save $3,600 by making the antennas
• C) Lose $1,000 by making the antennas
• D) Lose $3,600 by making the antennas

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Definitions:

Biblical Prophets

Religious figures in the Bible who were said to have been called by God to deliver messages and guidance to people.

Pierre Joseph Proudhon

was a French philosopher and socialist, known for declaring "Property is theft!" and advocating for the concept of mutualism.

Henry George

An American political economist and journalist who advocated for the "single tax" on land to improve social equity.

Single-Tax Movement

A political and economic ideology advocating for a tax system based solely on land value.