CORe Exam Dumps | PQR, Inc. is a globally certified manufacturer and repair shop of aircraft parts. PQR's costs to produce

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HBX.CORE.v2024-09-27.q132
Question 53

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Question 53/132

PQR, Inc. is a globally certified manufacturer and repair shop of aircraft parts. PQR's costs to produce these parts are as follows:
MethodCost per part
Manufacture internallyS 11,000
Purchase from outside manufacturer$ 10,000
Acquire resale parts and repair internally$ 9,000
Purchase refurbished parts from non-certified repair shop with its extended warranty$ 8,000 The firm's CEO directs supply management to provide wing flap inventory at the lowest cost to the company, while still meeting the goal of multinational market expansion. Which of the following courses of action BEST meets the CEO's directive?

A. Purchase materials from an outside manufacturer

B. Purchase refurbished parts from non-certified repair shop with its extended warranty

C. Acquire resale parts and repair them internally

D. Manufacture the parts internally

Correct Answer: C

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