Use the Following Information to Answer the Questions Below

question 98

Multiple Choice

Use the following information to answer the questions below.
You currently make a part for old equipment at a cost of $20 / unit. The annual fixed cost for this equipment is $50,000. 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 (see table) .

-Refer to the instruction above. What is the break even quantity between buying and making?

• A) 30,000 units per year
• B) 40,000 units per year
• C) 50,000 units per year
• D) 60,000 units per year

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Definitions:

Multi-Step Grievance

A structured process that involves several stages for resolving disputes between employees and employers, typically initiated by filing a formal complaint.

Mandatory Arbitration

A requirement that disputes between employees and employers must be resolved through arbitration rather than through court litigation.

Traditional Union-Management

Traditional union-management relationships involve interactions between labor unions and employers negotiating terms of employment, working conditions, and addressing disputes through established mechanisms.

Union Representatives

Individuals elected or appointed to act on behalf of members in a labor union, negotiating with employers and advocating for workers' rights.