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Use the data as presented to answer this question: a workshop can manufacture a part for $ 1 2 . 0 0 and the fixed
Use the data as presented to answer this question: a workshop can manufacture a part for $ and the fixed cost is $ As an alternative, the workshop could contract with an external supplier to purchase the part at a cost of $ which includes transportation costs.
a The workshop's anticipated production volume is units. Compute the total cost of manufacturing and the total cost of outsourcing from the external supplier.
b What is the best decision?
a The total cost of manufacturing for the workshop is $
The total cost of outsourcing from the external supplier is $
b The best decision is the because it has the
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