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The Altamonte Division of Custom Industries is in need of a particular service. The service can be obtained from another division of Custom at cost,

The Altamonte Division of Custom Industries is in need of a particular service. The service can be obtained from another division of Custom at "cost," with cost defined as the summation of variable cost ($9) and fixed cost ($3). Alternatively, Altamonte can secure the service from a source external to Custom for $10. Which of the following statements is true?

Multiple Choice

A. From Custom's perspective, the proper decision is reached by comparing $10 versus $9.

B. Altamonte should compare $10 versus $9 in deciding where to acquire the service.

C. Altamonte should compare $10 versus $12 in deciding where to acquire the service.

D. Altamonte should compare $10 versus $3 in deciding where to acquire the service.

E. Both Altamonte should compare $10 versus $12 in deciding where to acquire the service and from Custom's perspective, the proper decision is reached by comparing $10 versus $9.

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