The BBS firm currently spends $$1,200,000$ per quarter for $200,000$ modules that are needed during a year in production of its final product.

Management wants to bring production of this module $"$in$-$house", and needs to make the "make or buy" decision.

The accounting department has advised that additional costs will have to be incurred when the part is manufactured $"$in$-$house"

These costs are: fixed, labor, factory overhead, raw materials.