Genent's Preserves currently makes jams and jellies and a variety of decorative jars used for packaging. An outside supplier has offered to supply all of the needed decorative jars. For this make-or-buy decision, a cost analysis revealed the following avoidable unit costs for the decorative jars:

The relevant cost per jar is ________.
A) $0.67 per jar
B) $0.91 per jar
C) $1.74 per jar
D) $2.30 per jar

Question

Genent's Preserves currently makes jams and jellies and a variety of decorative jars used for packaging. An outside supplier has offered to supply all of the needed decorative jars. For this make-or-buy decision, a cost analysis revealed the following avoidable unit costs for the decorative jars:

The relevant cost per jar is ________.

The relevant cost per jar is ________.
A) $0.67 per jar 
B) $0.91 per jar 
C) $1.74 per jar 
D) $2.30 per jar

Quizplus · Accepted Answer

All avoidable costs are relevant for this decision.

Genent's Preserves Currently Makes Jams and Jellies and a Variety