You curreny make a part on old equipment at a cost of $200,000 per year and a variable cost of $15 / unit. You have foun
Posted: Sun Jul 03, 2022 5:22 pm
You curreny make a part on old equipment at a cost of $200,000 per year and a variable cost of $15 / unit. You have found an outside supplier who will charge you $25 per unit together with the annual fixed costs of $100,000/year. The following table summarizes the details of this make versus buy decision. Alternative Fixed Cost Buy from outside supplier $100,000 per year Make by your own $200,000 per year What are total costs to buy an annual quantity of 12,000 units? O $500.000 O $600.000 $300.000 $400,000 Variable Cost $25 per unit $15 per unit