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Meco Corporation operates a plant with a productive capacity to manufacture 20,000 units of its product a year. The follow information pertains to the production
Meco Corporation operates a plant with a productive capacity to manufacture 20,000 units of its product a year. The follow information pertains to the production costs at capacity:
Variable costsP160,000
Fixed costs 240,000
Total costsP400,000
A supplier has offered to sell 4,000 units to Meco annually. Assume no change in the fixed costs. What is the price per unit that makes Meco indifferent between the "make" and "buy" options?Group of answer choices
A. P20
B. P12
C. P8
D. P0
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