Anderson Co

question 88

Multiple Choice

Anderson Co. makes and uses 5,000 components each year in its manufacturing operations. An outside supplier has offered to supply the components to Anderson at $66 per unit. Anderson's production costs are as follows: If Anderson accepts the order, $8 of fixed overhead per unit will be eliminated.
What is the relevant cost to produce one unit?

• A) $86
• B) $52
• C) $78
• D) $60

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Definitions:

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A unit of heredity made up of DNA that is responsible for a specific trait or function in an organism.

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