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Your company makes BBQ's from scratch - that is to say, you currently make all...

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Accounting

Your company makes BBQ's from scratch - that is to say, you currently make all of the components for the BBQ's from their raw materials (sheet metal, paint, nuts & bolts, etc.)
Component "A", of which you make 3,000 units per month, costs you $28.00 in variable costs per unit and $12.00 per unit in fixed costs, for a total cost of $40 per unit based on the 3,000 units per month.
A supplier has offered to sell you 3,000 units per month of component "A" for $31.00 per unit. Assuming the relevant "dollars and cents" work out to accept the offer, what other factors should you consider before accepting the offer?
Question 16 options:
all of the listed answers are correct
"sunk costs" associated with your operation
"committed costs" associated with your operation
none of the listed answers are correct

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