Wishnell Toys can make 5,000 toy robots with the following costs: The company can purchase the 5,000 robots externally for $145,000.The avoidable fixed costs are $15,000 if the units are purchased externally.What is the cost savings if the company makes the robots?
A)$18,000
B)$15,000
C)$5,000
D)$3,000

Question

Wishnell Toys can make 5,000 toy robots with the following costs:  The company can purchase the 5,000 robots externally for $145,000.The avoidable fixed costs are $15,000 if the units are purchased externally.What is the cost savings if the company makes the robots?
A)$18,000 
B)$15,000 
C)$5,000 
D)$3,000

Quizplus · Accepted Answer

The Answer of Wishnell Toys can make 5,000 toy robots with the following costs:  The company can purchase the 5,000 robots externally for $145,000.The avoidable fixed costs are $15,000 if the units are purchased externally.What is the cost savings if the company makes the robots?
A)$18,000 
B)$15,000 
C)$5,000 
D)$3,000

Wishnell Toys Can Make 5,000 Toy Robots with the Following