Quirch Inc

question 97

Multiple Choice

Quirch Inc.manufactures machine parts for aircraft engines.The CEO,Chucky Valters,was considering an offer from a subcontractor who would provide 2,400 units of product PQ107 for Valters for a price of $150,000.If Quirch does not purchase these parts from the subcontractor it must produce them in-house with the following costs:
In addition to the above costs,if Valters produces part PQ107,he would also have a retooling and design cost of $9,800.The relevant costs of producing 2,400 units of product PQ107 are:

• A)$149,000.
• B)$129,800.
• C)$150,000.
• D)$164,200.
• E)$148,300.

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Definitions:

Net Capital Outflow

The investment gap where residents of a country engage in foreign asset acquisition versus foreign entities buying up local assets.

Net Exports

The value of a country's total exports minus its total imports, representing the balance of trade between a country and its trading partners.

Saving

The portion of income not spent on consumption, often put aside for future use or investment.

Net Capital Outflow

The financial divide between home nationals acquiring assets abroad and foreigners acquiring assets in the home country.