Use the Following to Answer the Questions Below

question 115

Multiple Choice

Use the following to answer the questions below.
You currently purchase a part used in your production process from an outside supplier,and have decided to begin making this part in-house.You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment.Cost information for these two options is as follows:

-Refer to the instruction above.For what range of output is the General-Purpose Equipment the low-cost option?

• A)0-30,000 units per year
• B)30,000 or more units per year
• C)40,000 or more units per year
• D)0-40,000 units per year

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Definitions:

Taxes

Mandatory financial charges or levies imposed on individuals, businesses, or transactions by a government, used to fund public expenditures.

Paid Maternity and Paternity Leave

Company-provided time off work for new parents, with compensation, to care for and bond with their newborn or newly adopted child.

Family and Medical Leave Act

U.S. federal law that provides employees with unpaid, job-protected leave for specified family and medical reasons.

Industrialized Nations

Countries that have undergone significant industrialization and now have a predominantly tertiary (service) and quaternary (knowledge-based) economy.