Genent's Preserves Currently Makes Jams and Jellies and a Variety

question 194

Multiple Choice

Genent's Preserves currently makes jams and jellies and a variety of decorative jars used for packaging. An outside supplier has offered to supply all of the needed decorative jars. For this make-or-buy decision, a cost analysis revealed the following avoidable unit costs for the decorative jars:

The maximum price that Genent's Preserves should be willing to pay for the decorative jars is ________.

• A) $0.64 per jar
• B) $0.87 per jar
• C) $0.49 per jar
• D) $2.26 per jar

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