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Automotive Springs Ghana Limited manufacturers of SIVOCO trailers purchases a certain component part from a supplier in India for $50 per part. The supplier
Automotive Springs Ghana Limited manufacturers of SIVOCO trailers purchases a certain component part from a supplier in India for $50 per part. The supplier is reliable and has maintained the same price structure for years. Automotive Springs is considering making their own plant for producing the component parts. The part in question could be produced at $40 per part, with an annual fixed investment of $15,000. Currently, Automotive Springs needs 500 of these parts per year. As another alternative, a new supplier located nearby is offering volume discounts for new customers of $50 per part for the first 100 parts ordered and $45 per part for each additional unit ordered. a. Should Automotive Springs make the component in-house, buy it from the new supplier, stick with the old sunnliar if th (45
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