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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
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
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