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LLZ Company manufacturers metal detectors in California at a cost of $9 per unit.

LLZ Company manufacturers metal detectors in California at a cost of $9 per unit. The most expensive component to make is the sensor which goes in the finished product. The cost is $5 per sensor. Last month LLZ acquired a company in Mexico that makes the sensors for $1 per sensor. LLZ plans to move all sensor manufacturing operations to the factory in Mexico. What is the movement of this cost saving process called?

A.

Reengineering

B.

Offshoring

C.

Rationalizing

D.

Outsourcing

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