Consider the Following Two Activities: (1) Performing Warranty Work, Cost

question 70

Multiple Choice

Consider the following two activities: (1) performing warranty work, cost: $60,000.The warranty cost of the most efficient competitor is $10,000.(2) Purchasing components, cost: $100,000 (5,000 purchase orders) .A study reveals that the most efficient level would use 2,500 purchase orders and entail a cost of $55,000. What is the total nonvalue-added cost?

• A) $55,000
• B) $60,000
• C) $105,000
• D) $100,000

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Definitions:

Genetic Explanations

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