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To make an item inhouse, equipement costing $240,000 must be purchased. It will have a life of 4 years, an annual cost of $72,000, and
To make an item inhouse, equipement costing $240,000 must be purchased. It will have a life of 4 years, an annual cost of $72,000, and each unit will cost $65 to manufacture. Buying the item externally will cost $100 per unit. At i = 15% per year, it is cheaper to make the item inhouse if the number produced per year is above ___________ units.
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