Use the Information Below to Answer the Following Question(s)

question 3

Multiple Choice

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?

• A) $5.70
• B) $1.50
• C) $1.65
• D) $4.10

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Definitions:

Organizational Stress

Stress experienced by employees due to factors related to the workplace environment, demands, and organizational structure.

Stress Management

Techniques and strategies to regulate and reduce stress and its effects on health and well-being.

Stress Outcomes

The effects or results of stress on an individual, which can include physical, emotional, or psychological reactions.

Type C Personality

A personality style characterized by detail-oriented, introverted individuals who may have a propensity for perfectionism and caution.