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Cost E $4,500 $4,000 $3,500 $3,000 E + E $2,500 1 $2,000 $1,500 $1,000 $500 $. 50 100 150 E F
Cost E $4,500 $4,000 $3,500 $3,000 E + E " $2,500 1 $2,000 $1,500 $1,000 $500 $. 50 100 150 " " E F 200 Quantity Buy Option --Make Option 250 300 350 400 a. b. C. d. What are the fixed costs for the buy decision? What is the breakeven quantity for the two options illustrated? At Q-250, would you choose the make or buy option? Why? At Q 300, what will be the total cost associated with the best decision at this quantity? Answer the questions that follow, based on the diagram provided below (2 poir $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 so 0 100 200 300 400 500 600 Quantity Buy Option -Make Option
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