Asked by beyonce logan on Jul 17, 2024
Verified
If Elly Industries continues to use 30,000 units of part MR24 each month, it would realize a financial advantage by purchasing this part from an outside supplier only if the supplier's unit price is less than:
A) $14 per unit
B) $11 per unit
C) $16 per unit
D) $13 per unit
Financial Advantage
This term refers to the benefits gained in financial terms, which could include lower costs, higher revenues, or any other aspect that improves a company's financial position.
Unit Price
The cost per single item or unit, facilitating cost comparisons and financial analysis.
Outside Supplier
An external entity that provides goods or services to another organization.
- Understand the concept of make-or-buy decisions and their impact on financial outcomes.
Verified Answer
Learning Objectives
- Understand the concept of make-or-buy decisions and their impact on financial outcomes.
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