Xebex Pty Ltd Is Considering Whether to Make or Buy

question 28

Multiple Choice

Xebex Pty Ltd is considering whether to make or buy a component used in the production of Faz Machines.The annual cost of producing the 100 000 components used by the company is as follows.If Xebex were to discontinue production of the component,direct fixed manufacturing costs would be reduced by 80 per cent.Xebex should buy the 100 000 components if the cost of purchasing per unit is less than what amount?

• A) $4.50
• B) $4.00
• C) $3.80
• D) $3.00

Identify the ongoing struggle and progress toward racial equality and civil rights post-Civil War.

Understand the concepts of marginal utility and how it influences consumer purchasing behavior.

Comprehend the composition and implications of the consumer's budget line.

Analyze the effects of income and price changes on consumer choices and the budget line.

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Definitions:

Legal Entities

Organizations that have legal rights and responsibilities, including the ability to enter into contracts, sue, and be sued; examples include corporations, governments, and non-profit organizations.

New Entity

A freshly established organization or structure that has its own legal identity.

Acquisition

The process of obtaining control of another corporation, either through purchase or merger.

Takeover

The transfer of control over a company from one group to another. The term generally has a hostile implication.