Scenario 2.6
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:

-Use Scenario 2.6 to answer this question. What are total costs under the General-Purpose Equipment option for an annual quantity of 40,000 units?
A) $400,000
B) $450,000
C) $800,000
D) $850,000

Question

Scenario 2.6
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:
 
-Use Scenario 2.6 to answer this question. What are total costs under the General-Purpose Equipment option for an annual quantity of 40,000 units?
A) $400,000 
B) $450,000 
C) $800,000 
D) $850,000

Quizplus · Accepted Answer

Without the specific details from Scenario 2.6, it's impossible to calculate or justify the correct answer accurately. However, based on the selection, the total costs under the General-Purpose Equipment option for an annual quantity of 40,000 units is $850,000.

Scenario 2.6 You Currently Purchase a Part Used in Your Production Process