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Fornelli, Inc

Question 184

Multiple Choice

Fornelli, Inc. can produce 100 units of a component part with the following costs: Fornelli, Inc. can produce 100 units of a component part with the following costs: If Fornelli, Inc. can purchase the units externally for $80,000, by what amount will its total costs change? A) An increase of $80,000 B) An increase of $5,000 C) An increase of $17,000 D) A decrease of $22,000 If Fornelli, Inc. can purchase the units externally for $80,000, by what amount will its total costs change?


A) An increase of $80,000
B) An increase of $5,000
C) An increase of $17,000
D) A decrease of $22,000

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