Use the Following to Answer the Questions Below

question 85

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.What are total costs under the Special-Purpose Equipment option for an annual quantity of 40,000 units?

• A)$400,000
• B)$500,000
• C)$800,000
• D)$850,000

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Definitions:

Function

A function is a relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output.

Simplify

To reduce a mathematical expression or equation to its simplest form by performing all operations and simplifying all terms.

Evaluate

To calculate the numerical value of an expression, equation, or function when certain values are known or substituted for variables.

Simplify

To reduce a mathematical expression to its simplest form by performing operations and combining like terms.