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Sandhill normally produces video games which it sells in the video game stores. The cost to produce a video game includes $ 2 2 .
Sandhill normally produces video games which it sells in the video game stores. The cost to produce a video game includes $ unit
variable cost and $ unit fixed cost. The average price of a video game is $ Sandhill has been approached by an outside
vendor who has proposed to digitize the video games for Sandhill which can then sell the video games directly to players as a
downloadable option. Using the following independent assumptions, apply the insource versus outsource decisionmaking process to
determine if Sandhill should continue to make its video games or outsource for a digitized version.
a
Your answer is partially correct.
Sandhill can purchase a digitized version of each video game, the price being offered by the outside vendor will be $ with
Sandhill still incurring $ of unit variable cost for game design and $ of unit fixed cost. Although, this means of providing
video gaming is trending, should Sandhill continue to make traditional video games or purchase a digitized version to sell? Round
answers to decimal places, eg
Sandhill should
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