A company is investigating the make-or-buy decision for a new item with the following cost structure: DECISION
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A company is investigating the make-or-buy decision for a new item with the following cost structure:
DECISION FIXED COST/YEAR VARIABLE COST/UNIT Make € 100,000 € 25 Buy 0 € 50
a) At what volumes would each decision be preferred?
b) What is the most economical decision for a volume of 15,000 units per year? lop1
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