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Suppose that if Cari Pump purchases ECs from Furry Deals, its best alternative use of the capacity currently used for ECs is to make and
Suppose that if Cari Pump purchases ECs from Furry Deals, its best alternative use of the capacity currently used for ECs is to make and sell special electronic components(SECs) to the Spec Company. Cari Pump estimates the following incremental revenues and costs from SECs: Total expected incremental future revenues $2,200,000 Total expected incremental future costs $2,350,000 On the basis of quantitative analysis alone, should Cari Pump make ECs or buy them from Furry Deals? (20 Marks)
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