Make or buy decision with opportunity cost Refer to the Rap-Tone Radio Company data presented in Exercise 14-1. Assume that all the data are the same as presented except that the space used for the production of clocks could be rented to another company for $2,500 a month.

Transcribed Image Text:

REQUIRED a. Analyze the data and determine if the clocks should be purchased or manufactured. b. If the management of Rap-Tone chose the opposite decision than you did for part a, what is the cost of their incorrect decision?