Cruise Company Produces a Part That Is Used in the Manufacture

question 74

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 Cruise Company can purchase 6,000 units of the part from Suri Company for $14 each, and the facilities currently used to make the part could be rented out to another manufacturer for $24,000 a year, what should Cruise Company do?

• A)Make the part and save $6.00 per unit.
• B)Make the part and save $2.00 per unit.
• C)Buy the part and save $2.00 per unit.
• D)Buy the part and save $1.00 per unit.

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Definitions:

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A significant, often sudden, transformation or shift in an organization, system, or personal behavior, marked by profound change.

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are participatory planning meetings that bring diverse stakeholders together to explore expectations for the future and create shared strategies for achieving them.

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refers to a sudden, significant transformation in an individual's life or in an organization's state, often brought about by a major event or realization.

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Gradual and continuous changes that an organization implements over time to improve processes, products, or services.