Question
You are given the following information: Costs Make option Buy Option Fixed Cost $125,000 $5,000 Variable Cost $15 $17 A. Find the break even quantity
You are given the following information: Costs Make option Buy Option Fixed Cost $125,000 $5,000 Variable Cost $15 $17 A. Find the break even quantity and the total cost at the break even point. B. If the requirement is 150,000 units, is it more cost- effective for the firm to buy or make the components? What is the cost savings for choosing the cheaper option?
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Trends In Financial Decision Making
Authors: Cees Van Dam
1978 Edition
9020706926, 978-9020706925
