Use the Following Scenario to Answer the Questions Below

question 89

Multiple Choice

Use the following scenario to answer the questions below.
A company is considering making versus buying a part needed for manufacturing.Particulars are as follows:

-Refer to the instruction above.What does the company save for the year by selecting this low-cost option (for annual requirements of 3,000 units) ?

• A)$5,000
• B)$1,000
• C)$3,000
• D)Can't be determined with information given

---

Definitions:

Personal Income

The total amount of income received by individuals from all sources, including wages, dividends, interest, and government transfers, before any deductions.

Net Taxes

The difference between taxes paid to the government and transfer payments received from the government.

Circular Flow

An economic model that depicts how money moves through an economy between producers and consumers, illustrating the interactions between different sectors.

Injections

In economic terms, it refers to the introduction of income into the flow of the economy through investment, government spending, or exports.