Cruise Company produces a part that is used in the manufacture of one of its products.The unit manufacturing costs of this part,assuming a production level of 6,000 units,are as follows:
Assuming Cruise Company can purchase 6,000 units of the part from Suri Company for $14 each,and the facilities currently used to make the part could be rented out to another manufacturer for $24,000 a year,what should Cruise Company do?
A) Make the part and save $6.00 per unit.
B) Make the part and save $2.00 per unit.
C) Buy the part and save $2.00 per unit.
D) Buy the part and save $1.00 per unit.
Correct Answer:
Verified
Q197: The managerial accountant at Coffee and Tea
Q199: Brittany Furniture manufactures two products: Futons and
Q200: Brittany Furniture manufactures two products: Couches and
Q201: Cruise Company produces a part that is
Q204: Cuyahoga Valley Bicycles uses a standard part
Q208: Outsourcing decisions are best made by comparing
Q215: Managers should consider which of the following
Q217: Outsourcing decisions are sometimes referred to as
A)make-or-buy
Q218: An opportunity cost is a past cost.
Q220: Qualitative factors play an important part in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents