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19. You make product Y in-house at a cost of $7/unit, which consists of $5/unit of fixed costs and $2/unit of variable costs. You need
19.
You make product Y in-house at a cost of $7/unit, which consists of $5/unit of fixed costs and $2/unit of variable costs. You need 1,000 units of Y per month. An outside supplier has offered to manufacture product Y for you at a wholesale price of $5 per unit. If you outsource the production of Y to the outside supplier in the short term, your profit will:
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remain the same
increase by $3,000
decrease by $3,000
decrease by $2,000
increase by $2,000
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