Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that a firm can purchase equipment for in-house use for $250,000 and produce needed parts for $10 each. Alternatively, a supplier could produce and

image text in transcribed
Suppose that a firm can purchase equipment for in-house use for $250,000 and produce needed parts for $10 each. Alternatively, a supplier could produce and ship the parts for $15 each. Ignoring the cost of negotiating a contract with the supplier 1. What is the breakeven point? (Just enter the number - no units, to ensure proper credit) 2. The firm expects that 45,000 parts will be needed. Based on the given information should they make or buy the part? (Just enter the word "buy" or "make" without the quotes.) 3. If the firm expects that they will need 85,000 parts, should they make or buy the part? (Just enter the word "buy" or "make" without the quotes.) Check

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions