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ColorPro Uses Part 87A in the Production of Color Printers

question 122

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ColorPro uses part 87A in the production of color printers.Unit manufacturing costs for part 87A are:
ColorPro uses part 87A in the production of color printers.Unit manufacturing costs for part 87A are:     ColorPro uses 100,000 units of 87A per year.Filbert Company has offered to sell ColorPro 100,000 units of 87A per year for $12.Fixed overhead is unavoidable. -  Which of the following is a qualitative factor that might affect ColorPro's decision? A)  Filbert has an outstanding reputation for quality. B)  Ordering from Filbert would give ColorPro a chance to see how well Filbert could meet JIT standards for ColorPro's other products. C)  Filbert is known for the reliability of its products. D)  Making the part in-house would help ColorPro avoid layoffs of direct and indirect labor. E)  All of these. ColorPro uses 100,000 units of 87A per year.Filbert Company has offered to sell ColorPro 100,000 units of 87A per year for $12.Fixed overhead is unavoidable.
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Which of the following is a qualitative factor that might affect ColorPro's decision?


Definitions:

Course Of Performance

The history of dealings between the parties in the particular contract at issue.

Perfect Tender Rule

A legal principle that requires goods delivered under a sales contract to exactly meet the specifications agreed upon.

Buyer/Lessee

The individual or entity that purchases or leases goods or property.

Breach

The action of violating or not adhering to a rule, contract, or ethical guideline.

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