Use the Following Scenario to Answer the Questions Below

question 53

Multiple Choice

Use the following scenario to answer the questions below.
You currently make a part on old equipment at a cost of $50,000 per year and a variable cost of $20 / unit.You have found an outside supplier who will make the part for $15 / unit if you will pay their annual fixed costs of $200,000 / year.The following table summarizes the details of this make versus buy decision.

-Refer to the instruction above.What does the company save for the year by selecting the low-cost option at an annual requirement of 40,000 units?

• A)$150,000
• B)$300,000
• C)$50,000
• D)$40,000

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Definitions:

Health-seeking Institutions

These are organizations or facilities where individuals seek medical advice, treatment, or care for their health conditions.

Magnet Institutions

Healthcare organizations recognized for their nursing excellence and high-quality patient care, able to attract and retain skilled nursing staff.

Comforting Care

Providing physical and emotional support in a manner that eases pain and distress, enhancing well-being and quality of life.

Theorists

Individuals who develop theories or systematic frameworks of ideas that explain or interpret aspects of the natural or social world.