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The CJP Company Produces 10,000 Units of Item S10 Annually

question 69

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The CJP Company produces 10,000 units of item S10 annually at a total cost of $190,000. The CJP Company produces 10,000 units of item S10 annually at a total cost of $190,000.   The XYZ Company has offered to supply 10,000 units of S10 per year for $18 per unit.If CJP accepts the offer,$4 per unit of the fixed overhead would be saved.In addition,some of CJP's facilities could be rented to a third party for $15,000 per year.At what price would CJP be indifferent to XYZ's offer? A) $17.00. B) $17.50. C) $18.50. D) $19.50. The XYZ Company has offered to supply 10,000 units of S10 per year for $18 per unit.If CJP accepts the offer,$4 per unit of the fixed overhead would be saved.In addition,some of CJP's facilities could be rented to a third party for $15,000 per year.At what price would CJP be indifferent to XYZ's offer?

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Definitions:

Sound

Vibrations that travel through the air or another medium and can be heard when they reach a person's or animal's ear.

Syntax

The arrangement of words and phrases to create well-formed sentences in a language.

Linguistic Relativity

The hypothesis that the structure of a language affects its speakers' world view or cognition, and thus people's perceptions are relative to their spoken language.

Morphemes

The smallest units of language that carry meaning, which can be words themselves or parts of words, such as prefixes or suffixes.

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