Make or Buy Decisions.

Make or buy is always an important decision for your company. Though your company has the capacity, sometimes it

may be less expensive to purchase directly from another wholesaler. The visualization in this exercise shows the cost

difference between make versus buy. Based on this information, please answer the following questions.

Click here to access a Tableau file, and here to access a Power BI file. $($The Tableau and Power BI files contain the same

data; you can use either to answer the questions in this assiznment. Your instructor may specify which program they prefer you

to use!!

How to Access Tableau: You can open the Tableau file in this problem statement with Tableau Desktop software. If you

don't have Tableau Desktop, you can download the most recent version of Tableau Reader, a free program that allows

you to open Tableau visualizations. To get the most recent version, search for "Tableau Reader" in your internet

browser, or click here.

How to Access Power BI: You can open the Power BI file in this problem statement with Power BI Desktop. If you don't

hawe it already, search for "Power BI download" in your internet browser, or click here for a free download.

Part $1$

By looking at the visualization, you notice that purchase cost is positive but everything else is negative. Which of

the following statements best describes this observation?

We use negative value to show an expenditure, which is the reason why the manufacturing expenses are

negative.

We use different signs to show whether it is paid internally or it is paid through external parties.

When we compare all the costs under both conditions $($make versus buy$),$ these numbers are the

differences. The positive value indicates the expenses we pay and the negative values represent the

expenses we can save when buying the product.

This is incorrect. The visualization must erroneously flip the signs.

Attempts: $0$ of $3$ used

Part $2$

By hovering over the figure, what is the total manufacturing costs if we decide to make the product by ourselves

assuming no other costs are involved in this manufacturing process?

$$170,000$

$$80,000$

$$100,000$

$$120,000$

Attempts: $0$ of $3$ used