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One of the computer manufacturers is studying manufacturing 20,000 transistors through the unused capacity for their machines. They expect the following costs to be incurred:

One of the computer manufacturers is studying manufacturing 20,000 transistors through the unused capacity for their machines. They expect the following costs to be incurred: $40,000 DM, $100,000 DL, $40,000 Ind M, $40,000 machines depreciation, and $25,000 building depreciation. The company has an offer to purchase the transistor at $8 from an external supplier. Total relevant costs to produce 20,000 transistors would be:

[[selectone]]

a. $245,000

b. $180,000

c. $140,000

d. $220,000

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