Question
Indigo Company is currently purchasing a component for $11 but is considering making the part internally. The plant engineer has suggested two alternatives. The first
Indigo Company is currently purchasing a component for $11 but is considering making the part internally. The plant engineer has suggested two alternatives. The first alternative would increase fixed costs by $11,600 per month and incur variable costs of $6 per part. The second alternative would increase fixed costs by $19,800 and incur variable costs of $4 per part. Collapse question part (a) What level of volume is necessary to justify making the part? (Round answers to 0 decimal places, e.g. 125.)
Level of volume First alternatives ? units
Second alternatives ? units
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