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

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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 1 (92.11 KiB) Viewed 27 times

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 If the annual quantity of all customer orders is 8000 units each year, which alternative you would prefer? O Make by your own. Either buy or make decision is indifferent. O Buy from outside supplier. Use both alternatives simultaneously.