Figure 13-2

question 58

Multiple Choice

Figure 13-2. ColorPro uses part 87A in the production of color printers. Unit manufacturing costs for part 87A are:
ColorPro uses 100,000 units of 87A per year. Filbert Company has offered to sell ColorPro 100,000 units of 87A per year for $12. Fixed overhead is unavoidable.
-Refer to Figure 13-2. Should ColorPro make or buy the part?

• A) Make the part because it will save $100,000 over buying it.
• B) Buy the part because it will save $100,000 over making it.
• C) Make the part because it will save $1,100,000 over buying it.
• D) Buy the part because it will save 1,100,000 over making it.
• E) Buy the part because it will save $300,000 over making it.

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Definitions:

Family Needs

The basic and extended requirements for the wellbeing and functioning of family members, including emotional, financial, and educational support.

Psychological Contract

An unwritten agreement that sets out mutual expectations, obligations, and understanding about work between an employer and an employee, beyond the formal contract of employment.

High-Performance Results

Refers to outcomes that significantly exceed the standard or expected levels of output, efficiency, or effectiveness in a given area.

Quality of Work Life

A concept that involves the enhancement of work conditions, job satisfaction, and overall well-being of employees.