The Pro Division of Custom Industries Is in Need of a Particular

question 55

Multiple Choice

The Pro Division of Custom Industries is in need of a particular service.The service can be obtained from another division of Custom at "cost," with cost defined as the summation of variable cost ($9) and fixed cost ($3) .Alternatively,Pro can secure the service from a source external to Custom for $10.Which of the following statements is true?

• A)Pro should compare $10 vs.$3 in deciding where to acquire the service.
• B)Pro should compare $10 vs.$9 in deciding where to acquire the service.
• C)Pro should compare $10 vs.$12 in deciding where to acquire the service.
• D)From Custom's perspective,the proper decision is reached by comparing $10 vs.$9.
• E)Both "C" and "D" are truE.

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Definitions:

Enthymeme

A syllogism in which one of the premises is implicit or assumed rather than explicitly stated.

Hedge Fund

A pooled investment fund that employs different strategies to earn active return, or alpha, for their investors.

Government-insured Deposits

Financial safeguards provided by the government for bank deposits, ensuring the safety of individual's money in the event of bank failure.

Enthymeme

A rhetorical argument that is essentially a syllogism with one premise left unstated.