Audio Labs Collected the Following Information on the Cost of Producing

question 111

Essay

Audio Labs collected the following information on the cost of producing 20,000 speaker units:
Cartunes has offered to sell Audio 10,000 speakers for $56.00 each.Should Audio Labs make or buy the parts if the facilities remain idle when speakers are purchased?
A)buy, save $16.00 per unit
B)buy, save $4.00 per unit
C)make, save $2.00 per unit
D)make, save $4.00 per unit
E)make, save $6.00 per unit

• A)buy, save $16.00 per unit
• B)buy, save $4.00 per unit
• C)make, save $2.00 per unit
• D)make, save $4.00 per unit
• E)make, save $6.00 per unit

---

Definitions:

Split-off Point

The stage in a production process where multiple products become distinguishable from one another.

Financial Advantage

An economic benefit enjoyed by individuals or businesses that allows for superior positioning in the market or financial health.

Joint Process

A production process in which multiple products are produced simultaneously from the same raw materials or system.

Split-off Point

The stage in a production process where joint products can be recognized as separate products.