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Answer the questions that follow, based on the diagram provided below 1500 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 0 100 200 Buy Option
Answer the questions that follow, based on the diagram provided below 1500 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 0 100 200 Buy Option 300 Quantity - 400 Make Option 500 600 1. What are the fixed costs for the buy decision? 2. What is the breakeven quantity for the two options illustrated? 3. At Q=300, would you choose the make or buy option? Why? 4. At Q 200, what will be the total cost associated with the best decision at this quantity? -
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