Cruise Company Produces a Part That Is Used in the Manufacture

question 90

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: Assuming no other use for its facilities, what is the highest price per unit that Cruise Company should be willing to pay for the part?

• A)$12
• B)$11
• C)$8
• D)$5

---

Definitions:

Range

The difference between the highest and lowest values in a data set, giving a measure of the data’s dispersion.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the mean.

Variance

A measure of variability that quantifies the spread of a set of data points or the dispersion of a distribution around its mean.

Interquartile Range

A measure of statistical dispersion representing the difference between the upper and lower quartiles of a dataset, providing insights into its variability.