You currently make a part on old equipment at a cost of $200,000 per year and a variable cost of $15 / unit. You have fo
Posted: Thu Apr 28, 2022 2:53 pm
You currently 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 Buy from outside supplier Make by your own Fixed Cost $100,000 per year Variable Cost $25 per unit $200,000 per year $15 per unit What are total costs to buy an annual quantity of 12,000 units? 0 $400,000 O $600,000 0 $300,000 O $500,000