Figure 7-3

question 95

Multiple Choice

Figure 7-3.Hamilton Company manufactures engines. Hamilton produces all the parts necessary for its engines except for one electronic component, which is purchased from two local suppliers: Traynor Inc. and Bello Company. Both suppliers are reliable and rarely deliver late; however, Traynor sells the component for $10.00 per unit and Bello sells the same component for $8.95. Hamilton purchases 70% of its components from Bello, because of the lower price. The total annual demand is 75,000 units.
-Refer to Figure 7-3. Suppose that Hamilton loses $2,500,000 in sales per year because of its reputation for defective units attributable to failed components. Using warranty hours, assign the proportional cost of lost sales to Traynor Inc. Then determine what effect this would have on the cost per component.

• A) $4.00 per unit
• B) $25.00 per unit
• C) $8.95 per unit
• D) $8.15 per unit

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Definitions:

Gender Identity

An individual's personal sense of their own gender, which may or may not correspond with their sex assigned at birth.

Identify

To recognize or distinguish something by its characteristics or traits.

Separate

To set or keep apart from others or from a main body or group, highlighting distinction or division.

Gender Segregation

The term for the preference of girls to play with other girls, and of boys to play with other boys.