Intellectual Olympiad in Business Fundamentals - 2026 ongoing

Subject: Business Fundamentals
Level: XII
Category: student
Quiz questions: in English
Example question: A company is deciding whether to outsource a component. The supplier charges $14 per unit, while the avoidable in-house cost is $11 per unit and unavoidable fixed overhead is $4 per unit. Assuming capacity is available, what is the relevant cost advantage of outsourcing each unit? Outsourcing saves $1 per unit, Producing internally saves $3 per unit, Outsourcing saves $3 per unit, Producing internally saves $7 per unit