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Iron Co was recently approached by a supplier that would like to sell Iron Co a part. Iron Co currently builds the part themselves and
Iron Co was recently approached by a supplier that would like to sell Iron Co a part. Iron
Co currently builds the part themselves and uses of the parts per year. Unit costs
for the part given the production level of are as follows:
Of the fixed manufacturing overhead, is avoidable if the component were bought
from the outside supplier. Also, if the part is purchased, the factory space used to make
the part could be rented to another company for $ per year.
What price would the supplier have to offer per unit such that Iron Co would be indifferent
between making and buying the part? Round your answer to the nearest cent eg
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