Answered step by step
Verified Expert Solution
Question
1 Approved Answer
painnthases in the Difterence colamin when the cost to make exceeds the coss to buy? If River Enterprises outsourcos the manufacturing of the component, operating
painnthases in the Difterence colamin when the cost to make exceeds the coss to buy? If River Enterprises outsourcos the manufacturing of the component, operating income will Requirement 2. What is the maximum price per unit River Enterprises would be willing to pay if houtsources the component? Begin by identifying the basic formula that is used to determine the indifforent outsourcing cost per unit Using the basic formula you determined above solve for the indifferent outsourcing cost per unit. (Round your answer to the nearest cent, sX X ) The meximum pnice per unit River Enterprises would be willing to pay ifit outsources the component is 1. If River Enterprises outsources the manufacturing of the component, will operating income increase or decrease? By how much? 2. What is the maximum price per unit River Enterprises would be willing to pay if it outsources the component? 2. What is the m costit ousourcing 80,000 components Variable costs + Fixed costs Variable costs + Fixed costs sasic formula you determined above solve for the indifferent outsourcing cost per unit (Round your answer to the nearest cent, $ XXX Data table
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started