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Use the information below to answer the following question(s) :
Part Z45 is a part used in the production of blenders at Andrew Corporation. The following costs and data relate to the production of Part Z45:
Andrew Corporation can purchase the part from an outside supplier for $4.25 per unit. If they purchase from the outside supplier, 40% of the fixed costs would be avoided.
-If Andrew Corporation buys the part, what is the most Andrew Corporation can spend per unit so that their operating income remains the same as it is currently?
Rationality
The quality of being based on or in accordance with reason or logic, often associated with decision-making processes that are efficient or optimal.
Scarce Resources
Limited availability of inputs required to produce goods and services, such as labor, land, and capital, necessitating choices and priorities in their utilization.
Unlimited Wants
The concept that human desires and aspirations are endless, which drives continual economic demand and consumption.
Scarce Resources
Natural or man-made assets that are limited in supply, making them valuable for the production of goods and services.
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