The fixed costs relate to the company's building equipment, and office staff. The company plans on billing the Kerry Parkdeveloper$68,000or services. Bradley is currently behind schedule on other projects and is paying a late penalty of$1,200per day. Walt Bradley, the owner of Bradley Heating and Cooling, is considering ordering prefabricated ductwork forthe Kerry Park job. The prefabricated ductwork will cost$40,000(including the cost of sheet metal). If Waltbuys the prefabricated ductwork, he'll be able to reassign workers to another project and avoid5days of

late fees.

Required:

Should Bradley make the ductwork or buy it prefabricated?

Dont Buy Prefabricated Buy Prefabricated Buy Difference

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