Use the Following Information to Answer the Questions Below

question 73

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) .

-Refers to the instruction above.What are total costs to buy an annual quantity of 40,000 units?

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

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Definitions:

U.S. Exports

Goods, services, and capital sent from the United States to other countries.

Government Budget Deficit

Occurs when a government's expenditures exceed its revenues within a specific fiscal period, requiring borrowing to finance the gap.

Supply Of Domestic Currency

The total amount of a country's currency available within the economy, which can be influenced by the central bank's monetary policy and other factors.