Use the Following to Answer the Questions Below

question 2

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.At an annual requirement of 40,000 units,what does the company save per year by selecting the low-cost option?

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

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Definitions:

Incidental Supplies

Items or materials used in the course of medical care or treatment that are not directly related to a specific patient's diagnosis or treatment.

Occasionally Reordered

The process of arranging items or tasks at irregular intervals, rather than on a regular basis.

Thrown Away

Discarded or disposed of, typically referring to objects or materials considered no longer useful or desired.

Used Only Once

Referring to items or materials designed to be disposed of after a single use to prevent cross-contamination.