The Pro Division of Custom Industries is in need of a particular service.The service can be obtained from another division of Custom at "cost," with cost defined as the summation of variable cost ($9) and fixed cost ($3) .Alternatively,Pro can secure the service from a source external to Custom for $10.Which of the following statements is true?
A) Pro should compare $10 vs.$3 in deciding where to acquire the service.
B) Pro should compare $10 vs.$9 in deciding where to acquire the service.
C) Pro should compare $10 vs.$12 in deciding where to acquire the service.
D) From Custom's perspective,the proper decision is reached by comparing $10 vs.$9.
E) Both "C" and "D" are truE.
Correct Answer:
Verified
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