Quirch Inc

Multiple Choice

Quirch Inc. manufactures machine parts for aircraft engines. The CEO, Chucky Valters, was considering an offer from a subcontractor who would provide 2,400 units of product PQ107 for Valters for a price of $150,000. If Quirch does not purchase these parts from the subcontractor it must produce them in-house with the following costs: In addition to the above costs, if Quirch produces part PQ107, it would also have a retooling and design cost of $9,800. The relevant costs of producing 2,400 units of product PQ107 are:

A) $149,000.
B) $129,800.
C) $150,000.
D) $164,200.
E) $148,300.