Fornelli, Inc. can produce 100 units of a component part with the following costs: If Fornelli, Inc. can purchase the units externally for $80,000, by what amount will its total costs change?
A) An increase of $80,000
B) An increase of $5,000
C) An increase of $17,000
D) A decrease of $22,000

Question

Fornelli, Inc. can produce 100 units of a component part with the following costs:  If Fornelli, Inc. can purchase the units externally for $80,000, by what amount will its total costs change?
A) An increase of $80,000 
B) An increase of $5,000 
C) An increase of $17,000 
D) A decrease of $22,000

Quizplus · Accepted Answer

The Answer of Fornelli, Inc. can produce 100 units of a component part with the following costs:  If Fornelli, Inc. can purchase the units externally for $80,000, by what amount will its total costs change?
A) An increase of $80,000 
B) An increase of $5,000 
C) An increase of $17,000 
D) A decrease of $22,000