Storm, Inc. manufactures bicycles. Storm currently manufactures the seats used on its bikes, but is considering...

  

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Storm, Inc. manufactures bicycles. Storm currently manufactures the seats used on its bikes, but is considering whether to purchase the seats from an outside supplier. Which of the following factors are relevant to Storm's decision to make the seats in-house versus purchasing the seats from an outside supplier? ABCDE A. B. E. C. D. Fixed costs avoided if buy seats from supplier Yes Yes No O Choice A O Choice B No Yes Selling price Storm charges for its bikes Yes No Yes No No Per-unit purchase price if buy seats from supplier Yes Yes Yes No Yes Profitable use of freed-up capacity if buy seats from supplier Yes Yes No Yes No A. B. C. D. E. O Choice A O Choice B O Choice C O Choice D O Choice E Yes Yes No No. Yes No Yes No No Yes Yes No Yes Yes No Yes No Storm, Inc. manufactures bicycles. Storm currently manufactures the seats used on its bikes, but is considering whether to purchase the seats from an outside supplier. Which of the following factors are relevant to Storm's decision to make the seats in-house versus purchasing the seats from an outside supplier? ABCDE A. B. E. C. D. Fixed costs avoided if buy seats from supplier Yes Yes No O Choice A O Choice B No Yes Selling price Storm charges for its bikes Yes No Yes No No Per-unit purchase price if buy seats from supplier Yes Yes Yes No Yes Profitable use of freed-up capacity if buy seats from supplier Yes Yes No Yes No A. B. C. D. E. O Choice A O Choice B O Choice C O Choice D O Choice E Yes Yes No No. Yes No Yes No No Yes Yes No Yes Yes No Yes No

Answer rating: 100% (QA)

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