A US Motorcycle Manufacturer Has the Option of Either Making the the Gas

question 65

Multiple Choice

A U.S. motorcycle manufacturer has the option of either making the gas tank in their newly designed motorcycle, or subcontracting it to a manufacturer from Sinagpore. The manufacturer expects to produce 1,000 units per year. Costs for the two options are:
$\begin{array}{|l|c|c|}\hline \text { Source } & \text { Fixed Cost } & \text { Variable Cost } \\\hline \text { Make in-house } & \$ 15,000 & \$ 21.50 \\\hline \text { Buy from Singapore } & \$ 0 & \$ 29.00 \\\hline\end{array}$
-The volume they are indifferent regarding the decision to make or buy is _____ units.

• A) less than or equal to 2,000
• B) more than 2,000 but less than or equal to 4,000
• C) more than 4,000 but less than or equal to 6,000
• D) more than 6,000 but less than or equal to 8,000
• E) more than 8,000.

---

Definitions:

Artisan Husband

A craftsman who is skilled in a particular trade or craft, often running a family business along with his spouse.

Family Meals

Dining experiences that involve members of a household eating together.

Family Journal

A personal or collective diary kept by family members documenting their life events, experiences, and histories.

Consumer Markets

Refers to spaces or systems where goods and services are sold by businesses to the end-user, typically for personal or household use.