Cruise Company Produces a Part That Is Used in the Manufacture

question 70

Multiple Choice

Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,000 units, are as follows:
Suri Company has offered to sell 6,000 units of the same part to Cruise Company for $14 per unit. Assuming the company has no other use for its facilities, what should Cruise Company do?

• A)Make the part and save $3 per unit.
• B)Make the part and save $6 per unit.
• C)Buy from Suri and save $2 per unit.
• D)Make the part and save $10 per unit.

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Definitions:

Assertiveness

The quality of being self-assured and confident without being aggressive, allowing individuals to express their thoughts and feelings in a respectful manner.

Rights

Entitlements or freedoms that are guaranteed under law or by societal norms.

Self-Esteem

An individual's overall subjective emotional evaluation of their own worth or abilities.

Distraction

A condition of having one's attention diverted from a task or focus, often due to external stimuli or internal thoughts, leading to decreased productivity or awareness.