Question
Use the Following Information to Answer the Questions Below Should our Business Make or Buy the Handle Bars that go onto the Bikes we Make
Use the Following Information to Answer the Questions Below Should our Business Make or Buy the Handle Bars that go onto the Bikes we Make ? Given the Following INFO; Costs to Produce the Handle Bars Include the Following; Direct Materials Costs are $40 per unit Direct Labor is $30 per unit Variable MOH Costs are $5 per unit Avoidable Fixed Costs are $10,000 per month Un-Avoidable Fixed Costs are $30,000 per Month Average Production is 2,000 Bikes per Month Costs to Buy the Handle Bars are as Follows; Total Outsource Purchase Costs are $85 Per Unit Our Business will be Able to Generate Rental Income of $6,000 per Month from the empty Factory Space.
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