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Scenario 2.6 You Currently Purchase a Part Used in Your Production Process

Question 222

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Scenario 2.6
You currently purchase a part used in your production process from an outside supplier,and have decided to begin making this part in-house.You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment.Cost information for these two options is as follows:
Scenario 2.6 You currently purchase a part used in your production process from an outside supplier,and have decided to begin making this part in-house.You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment.Cost information for these two options is as follows: -Use Scenario 2.6 to solve this mystery.At an annual requirement of 40,000 units,what does the company save per year by selecting the low-cost option? A) $150,000 B) $300,000 C) $50,000 D) $40,000
-Use Scenario 2.6 to solve this mystery.At an annual requirement of 40,000 units,what does the company save per year by selecting the low-cost option?


A) $150,000
B) $300,000
C) $50,000
D) $40,000

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