Cruise Company Produces a Part That Is Used in the Manufacture

question 208

Multiple Choice

Cruise Company produces a part that is used in the manufacture of one of its products.The unit manufacturing costs of this part,assuming a production level of 6,000 units,are as follows:

Assuming no other use for its facilities,what is the highest price per unit that Cruise Company should pay for the part?

• A)$12
• B)$11
• C)$8
• D)$5

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Definitions:

.1 Level

Often referred to as the alpha level, it is a threshold used in hypothesis testing to determine if the observed data are statistically significant.

Visually

Pertaining to or relating to the ability to see or the process of vision.

Causal Relationships

denote a connection between two events where one is understood to be a direct result of the other, indicating a cause-and-effect relationship.

Experiments

The implementation of scientific procedures undertaken to discover something unknown or test a hypothesis, involving a manipulation of variables to determine cause and effect.