A Supplier Offers to Make Part a for $30

question 208

Multiple Choice

A supplier offers to make Part A for $30. Altec Services Corporation has relevant costs of $47 a unit to manufacture 1,020 units of Part A. If there is excess capacity, the opportunity cost of buying Part A from the supplier is ________.

• A) $0
• B) $47,940
• C) $30,600
• D) $78,540

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Definitions:

Table of Contents

A list of titles, headings, or topics in a document, placed at the beginning to show its structure.

Multiple Audiences

Varieties of audience groups each potentially with distinct expectations, needs, and background knowledge, to whom communication or content may be targeted.

Background Information

Provides context and necessary details for understanding the main content or subject matter.

Extrinsic Motivator

An external reward or incentive, such as money or recognition, that motivates individuals to perform a task.