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Benitez Company currently outsources a relay switch that is a component in one of itsproducts. The switches cost $20 each. The company is considering making
Benitez Company currently outsources a relay switch that is a component in one of itsproducts. The switches cost $20 each. The company is considering making the switches internally at the following projected annual productlon costs: The company expects an annual need for 5.000 switchies. If the company makes the product, it will have to utilize factory space cutiently being feased to another company tor $1,500 a month. If the compary decides to make the parts, total costs will be: Midtipe Choico: $10500 more than f the swithes aie purchased $27,000 fess than if the swithes are purchased
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