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Suppose that a manufacturer need to produce a custom aluminum housing for a special customer order. Because it currently does not have the equipment necessary
Suppose that a manufacturer need to produce a custom aluminum housing for a special customer order. Because it currently does not have the equipment necessary to make the housing, it would have to acquire machines and tooling at a fixed cost (net of salvage value after the project is completed) of $250000. The variable cost of production is estimated to be $20 per unit. The company can outsource the housing to a metal fabricator at a cost of $35 per unit. The customer order is for 12000 units. What it should do
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