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Pronto Ltd Manufactures Photo Frames and Photo Albums but 15

Question 6

Multiple Choice

Pronto Ltd manufactures photo frames and photo albums but 15 000 units of photo frames could be purchased for $5.00 each. The per-unit costs of production for these frames are: Pronto Ltd manufactures photo frames and photo albums but 15 000 units of photo frames could be purchased for $5.00 each. The per-unit costs of production for these frames are: Should the frames be purchased instead of being made? A) No, because it saves $1.50 per unit. B) No, because it saves $0.50 per unit. C) Yes, because it saves $2.00 per unit. D) Yes, because it saves $5.00 per unit. Should the frames be purchased instead of being made?


A) No, because it saves $1.50 per unit.
B) No, because it saves $0.50 per unit.
C) Yes, because it saves $2.00 per unit.
D) Yes, because it saves $5.00 per unit.

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