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An outside contractor is willing to supply 1500 engine at a price of $336 per unit. If the offer is accepted the company will make
An outside contractor is willing to supply 1500 engine at a price of $336 per unit. If the offer is accepted the company will make 1500 engine in house and buy 1500 engines from the contractor. The company fixed manufacturing costs will decline by 20% and the variable marketing costs per unit on the 1500 engines purchased will decline by 40% calculate the cost in each optionPurchase cost? Variable manufacturing? Fixed manufacturing? Variable marketing? Fixed marketing? Cost of option? Difference in favor of making option? Tel me which one is the Buy 1500units and make 1500 units Make 3000 units
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