Lasso Corporation Manufactures Part B89 in Its Internal Processing Division

question 61

Multiple Choice

Lasso Corporation manufactures Part B89 in its internal processing division. Lasso produces 11,000 units of Part B89 annually. The annual costs to produce Part B89 at the level of 11,000 units include: All of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier. Assuming Lasso can purchase 11,000 units of the part from the Nadal Parts Company for $20.50 each, and the facilities currently used to make the part could be rented out to another manufacturer for $18,000 a year, what should Lasso do?

• A)Make the part and save $9.00 per unit.
• B)Make the part and save $3.16 per unit.
• C)Buy the part and save $9.00 per unit.
• D)Buy the part and save $3.16 per unit.

---

Definitions:

Settings

In legal contexts, refers to court dates and proceedings schedules, but more broadly can involve configurations or preferences in systems or software.

Work Environment

The setting, conditions, and culture that employees experience in their workplace.

Work Experience

Refers to the jobs and positions an individual has held, detailing the roles, responsibilities, and duration of each.

Greater Flexibility

Often refers to improved adaptability or versatility in policies, systems, or physical capabilities.