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Creative Ammo currently makes and sells 5.7 x 28 bullets Information related to its revenue and costs are listed below: Variable costs $ 9.77 Fixed
Creative Ammo currently makes and sells 5.7 x 28 bullets | |||||
Information related to its revenue and costs are listed below: | |||||
Variable costs | $ 9.77 | ||||
Fixed costs | $ 7.22 | ||||
Units Sold | 777 | ||||
Fins Distributors has offered to sell its 5.7 x 228 ammo to Creative Ammo | |||||
for $10.33 per unit. $2.89 per unit of the fixed costs can be saved by purchasing | |||||
the ammo from Fins Distributors. | |||||
What will be the difference in price between continuing to make the ammo | |||||
or purchasing the ammo? And should the company continuing making the | |||||
ammo or purchasing the ammo from the vendor? |
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