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02.41 Fab Motors has manufactured compressor parts at its plant in Pitcairn, Indiana, for the past 25 years. An outside supplier. Superior Compressor Company has
02.41 Fab Motors has manufactured compressor parts at its plant in Pitcairn, Indiana, for the past 25 years. An outside supplier. Superior Compressor Company has offered to supply compressor model C38 at a price of $200/unit Current unit manufacturing costs for (238 are as follows: $213 a. Should Superior Compressor's offer be accepted if the Pitcairn plan is presently operating below capacity? Total Costs $ 196 Therefore, no as we should keep it inhouse as $ 196 is less than $200 b. What is the maximum acceptable purchase price if the plan facilities are fully utilized at present and if any additional available capacity can be deployed for the production of other compressors? $2 13, if $1? is the cost of adding additional capacity
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