27 49 Elkhart, a division of Indiana Enterprises, currently makes 100,000 units of a product that has created a number of manufacturing problems Elkhart's costs follow Manufacturing costs Variable $540,000 180,000 Allocated corporate administrative cost60,000 Fixed IfElkhart were to discontinue production, fixed manufacturing costs would be reduced by 70 The relevant cost of deciding whether the division should purchase the product from an outside supplier is A $540,000 B $594,000 C $666,000 D $720,000 E $726,000 28 33 If the volume sold reacts strongly to changes in price, demand Has no elasticity Has no elasticity A B Is elastic C Is inelastic D Is unrealistic Has negative elasticity E

Question

27 49  Elkhart, a division of Indiana Enterprises, currently makes 100,000 units of a product that has created a number of manufacturing problems  Elkhart's costs follow Manufacturing costs  Variable $540,000 180,000 Allocated corporate administrative cost60,000 Fixed IfElkhart were to discontinue production, fixed manufacturing costs would be reduced by 70   The relevant cost of deciding whether the division should purchase the product from an outside supplier is  A  $540,000 B  $594,000 C  $666,000 D  $720,000 E  $726,000 28 33  If the volume sold reacts strongly to changes in price, demand  Has no elasticity Has no elasticity A  B  Is elastic C  Is inelastic D  Is unrealistic Has negative elasticity E

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27-49. Elkhart, a division of Indiana Enterprises, currently makes 100,000 units of a product that has created a number of manufacturing problems. Elkhart's costs follow

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