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Ultimate Travel Company fabricates automobiles. Each auto includes one wiring harness, which is currently made in - house. Details of the harness fabrication are as
Ultimate Travel Company fabricates automobiles. Each auto includes one wiring harness, which is currently made in house. Details of the harness fabrication are as follows: Volume units per month Variable cost per unit $ per unit Fixed costs $ per month A factory in India has offered to supply Ultimate Travel with ready made units for a cost of $ each. Assume that Ultimate Travel's fixed costs are unavoidable, but the company could use the vacated production facilities to earn an additional $ of profit per month. In order to maximize operating income, Ultimate Travel should outsource. True False
Ultimate Travel Company fabricates automobiles. Each auto includes one wiring harness, which is currently made in house. Details of the harness fabrication are as follows:
Volume
units per month
Variable cost per unit
$ per unit
Fixed costs
$ per month
A factory in India has offered to supply Ultimate Travel with ready made units for a cost of $ each. Assume that Ultimate Travel's fixed costs are unavoidable, but the company could use the vacated production facilities to earn an additional $ of profit per month. In order to maximize operating income, Ultimate Travel should outsource.
True
False
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