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Problem 12.27 Make or Buy Analysis [LO2] AHemathe 2: Purchabe oildrums tham an outaide supblier for $2025 ebch hased on a current activit tevel of
Problem 12.27 Make or Buy Analysis [LO2] AHemathe 2: Purchabe oildrums tham an outaide supblier for $2025 ebch hased on a current activit tevel of 30,000 units pet your The tatal gonerw company overthest would be unutfected by this dedsion. Anoulred: a. What wal be the fotal relevant cost of 30.000 susssemblies if they are menulactured inbernaly as cemoand to being purchased? b. Whar would be the per unit cost of eie eoch wubssembly mansactured internaly? iOe net noved intermadiata calculations. Raund your answer to 2 decimal piaces.) c. Which course of sction would you recommend to the president? indifferent between the two altematives Manutacture internally Purchase from the outside supplier 2. Seebsch is unsure what the company should do and would like an analysis showing the unit costs and total costs for each of the Wo alternatives given above. 7.t. What wal be the total relevant cost of 42,000 subassembles if they are manufactured internally? 2. What would be the per unit cost of subassembly manufactured internally? (Do not round intermediate calculations. Round your iswer to 2 decimal places.) Which course of action would you recommend if 42,000 of Indifferent botween the two atternatives Purchase from the outside supplier Monufacture internally What will be the total relevant cost of 50,000 subassemblies if they are manufactured internally? a.3. Which coune of sction would you recommend it 42.000 assembiles are needed each yean indifferent between the two oternatives Purchase from the outside supplier Marulacture internaly b-1, What will be the total relevant cost of 50,000 subossembles if they are manufactured internaily? b-2. What would be the per unit cost of subassembly manufactured imtemally? (Do not round intermediate calculationa. Round your answer to 2 decimal places.) b. Which course of action would you recammend if 50,000 assembles are needed each yoar? Purchase from the outside supplier indfferent between the two alternatives Manufocture internally 3. This part of the question is not part of your Connect assignment
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