Reading Margin of Safety Document below and Using the following Jean's Jeans instructions and documents at the bottom of the page1, complete the analysis of whether to make or buy your jeans:

1. review the financial projections and the 8 of questions

2.on page 5, use the milestone point and make a recommendation if you will make or buy your products?

3. be sure to access the cost to acquire equipment and the cost of labor/ show your analysis and its impact on ROI.

Assumptions

- you are currently buyingyour jeans form other manufactures

-your analysis is for the same number of pairs bought

- you will need to hire 1 more person at minimum wage in Los Angeles with 40 hours per week, all taxes included

- material cost to make one pair of jeans is $3.00 per pair

- equipment needed includes 2 sewing machines at $ 1000.00 each

- all other expenses remain the same as you have enough space in your current building

- new tariffs will add $ 2.00 per pair if you continue buying