Question
a firm currently makes a component, and requires 30 000 of them for the coming year's production. another supplier has offered the part at a
a firm currently makes a component, and requires 30 000 of them for the coming year's production. another supplier has offered the part at a delivered price of $3 per unit. it would cost $3000 to check purchased units for quality. product costs per unit for the past year were $2.35 variable and $1 fixed based on 30 000 units. if the component was bought, fixed overhead would be reduced by $6000, the cost of leasing specialised equipment. the space vacated by the equipment can be rented for $4000 for the year. which of the following statements is the correct quantitative analysis of the make or buy decision? select one:
a.the buy option costs $10 500 more than the make option.
b.the buy option costs $12 500 more than the make option.
c.the firm is indifferent between the two options.
d.the buy option costs $12 500 less than the make option. clear my choice
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