Question
Brooklyn Company is an outsource manufacturer and has approached Over the Bridge Company and proposed manufacturing the 40ft pedestrian bridge for $4,800 per unit. Brooklyn
Brooklyn Company is an outsource manufacturer and has approached Over the Bridge Company and proposed manufacturing the 40ft pedestrian bridge for $4,800 per unit. Brooklyn has offered to ship completed bridges to Over the River's warehouse in 24 pc batches for $3000. Over the River Bridge Company's also pick up in completed ridges at Brooklyn's plant for a cost of about $95 per bridge. If Over the River Bridge Company outsources the 40-foot pedestrian bridge, it will save all fixed manufacturing overhead because it will open capacity for the other two products. Perform a buy or make analysis on this option and provide guidance on buy or build and shipping as appropriate.
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