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Randall Corporation is a table manufacturing company that has the following cost structure for producing table tops. Recently, Randall Corporation received an offer from Blurr Corporation to supply the table tops to Randall. Randall is considering buying the table tops from Blurr instead of manufacturing them internally. Which one of the following statements is correct? A. Randall should accept Blurr’s offer if it is less than $47.00. B. Randall should accept Blurr’s offer if it is $50.00 or more and Randall has excess manufacturing capacity. C. Randall should accept Blurr’s offer if it is more than $47.00 and Randall has excess manufacturing capacity. D. Randall should reject Blurr’s offer if it is $50.00 or more. |