Question
Should you Make or Buy? You have to decide whether to make or buy a component (part) that is an input for a product that
Should you Make or Buy? You have to decide whether to make or buy a component (part) that is an input for a product that you sell for $ 49.95. Your analysis shows that based upon the estimated volume of parts you will require, your variable costs per unit will be and given estimated volumes, your fixed ( plant and equipment) cost per unit is $.48 per unit. A quick bid in the market suggests that you can currently buy the same part from two suppliers for 1.00 (another supplier bid ). Assuming that there are no real quality differences between what you make and what you buy from suppliers, you should?
answer: which is the Make some parts and buy some parts to keep leverage over supplies
pLEASE ExPlaIN
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