A Supplier Offers to Make Part a for $35

question 6

Multiple Choice

A supplier offers to make Part A for $35. Altec Company has relevant costs of $40 a unit to manufacture 1,000 units of Part A. If there is excess capacity, the opportunity cost of buying Part A from the supplier is:

• A)0
• B)$40,000
• C)$35,000
• D)indeterminable

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Definitions:

Medical Equipment

Devices used in medical practice to diagnose, prevent, or treat diseases or medical conditions.

Cognitive Development

A process involving the growth and enhancement of mental abilities, such as thinking, reasoning, problem-solving, and understanding, throughout a person's life.

Formal Operations

The final stage of cognitive development in Piaget's theory, typically beginning around age 12, characterized by the ability to think abstractly, logically, and systematically.

Jean Piaget

A Swiss psychologist known for his pioneering work in child development, specifically his theory of cognitive development that explains how children construct a mental model of the world.