Question $9$

$5$ pts

Acme Company manufactures widgets, the production of which requires component part Z$.$ Acme currently makes Part Z in$-$house but is considering whether to purchase Part $Z$ from an outside supplier. Acme has gathered data regarding the following factors:

I. Fixed costs avoided if Acme purchases Part $Z$ from an outside supplier.

$11.$ Selling price that Acme charges for its widgets.

III. Per$-$unit purchase price if Acme purchases Part Z from an outside supplier.

IV$.$ Profitable use of freed$-$up capacity if Acme purchases Part Z from an outside supplier.

Which factors are relevant to the decision to make Part $Z$ in$-$house versus purchasing Part Z from an outside supplier?

I and III.

I, II$,$ and III.

I, III, and IV

I, II$,$ and IV$.$

I, II$,$ III, and IV