Use the Following Information to Answer the Questions Below

question 52

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 are total costs to make a quantity of 40,000 units per year?

• A) $400,000
• B) $450,000
• C) $800,000
• D) $850,000

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Definitions:

Creative Power

The ability or capacity to generate original ideas, solutions, or artistic expressions.

Defective Body Parts

Refers to organs or components of the body that are not functioning optimally or are malformed, impacting an individual's health or abilities.

Sexually Defective

This is not a commonly recognized psychological or medical term and could be considered offensive; it lacks a clear, respectful definition.

Technological Support

Assistance provided to users of technology products or services, often involving help desks, troubleshooting, and maintenance services.