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Elkhart, a division of Indiana Enterprises, currently makes 140,000 units of a product that has created a number of manufacturing problems. Elkhart's costs follow. If
Elkhart, a division of Indiana Enterprises, currently makes 140,000 units of a product that has created a number of manufacturing problems. Elkhart's costs follow. If Elkhart were to discontinue production, fixed manufacturing costs would be reduced by 80%. The relevant cost of deciding whether the division should purchase the product from an outside supplier is: Muitiple Cholce $647,400 $797,000 $759,600 $824.600
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