Pueblo Production Company Manufactures 50,000 High-Definition Televisions Each Year

Multiple Choice

Pueblo Production Company manufactures 50,000 high-definition televisions each year.Pueblo is considering purchasing the glass screens from an outside source rather than producing them internally.The following data relate to the glass screens: Should Pueblo purchase or produce the screens, and what is the savings associated with the decision?

A) Purchase the screens and save $157,100.
B) Produce the screens and save $157,100.
C) Produce the screens and save $207,500.
D) Purchase the screens and save $207,500.