Question
Robotechnology Corporation currently manufactures all parts of their product. The firm is trying to decide whether to purchase circuitry from an outside manufacturer instead of
Robotechnology Corporation currently manufactures all parts of their product. The firm is trying to decide whether to purchase circuitry from an outside manufacturer instead of making the circuitry. Current monthly costs to manufacture the circuitry are as follows:
The outside supplier would charge $75,000 for the circuitry. If Robotechnology did not manufacture the circuitry, they could use the current manufacturing space for storage that currently costs the company $10,000 offsite. Decision alternatives are to make or buy the circuitry.
Place the relevant costs and benefits of each alternative in the columns.
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