Alpha Co Can Produce a Unit of Beta for the Following

question 50

Multiple Choice

Alpha Co. can produce a unit of Beta for the following costs: An outside supplier offers to provide Alpha with all the Beta units it needs at $60 per unit. If Alpha buys from the supplier, Alpha will still incur 40% of its overhead. Alpha should:

• A) Buy Beta since the relevant cost to make it is $72.
• B) Make Beta since the relevant cost to make it is $56.
• C) Buy Beta since the relevant cost to make it is $48.
• D) Make Beta since the relevant cost to make it is $48.
• E) Buy Beta since the relevant cost to make it is $56.

---

Definitions:

Central Tendency

A statistical measure that identifies the center of a data set, represented by the mean, median, or mode.

Caffeine

A central nervous system stimulant known for its ability to ward off drowsiness and restore alertness.

Maze-Running

A method used in experimental psychology and animal studies to assess spatial learning and memory.

Errors

Mistakes or deviations from accuracy and correctness in actions, thoughts, or judgments.