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Your company makes BBQ's from scratch - that is to say, you currently make all of the components for the BBQ's from their raw
Your company makes BBQ's from scratch - that is to say, you currently make all of the components for the BBQ's from their raw materials (sheet metal, paint, nuts & bolts, etc.) Component "A", of which you make 3,000 units per month, costs you $28.00 in variable costs per unit and $12.00 per unit in fixed costs, for a total cost of $40 per unit based on the 3,000 units per month. A supplier has offered to sell you 3,000 units per month of component "A" for $31.00 per unit. Assuming the relevant "dollars and cents" work out to accept the offer, what other factors should you consider before accepting the offer? "sunk costs" associated with your operation Onone of the listed answers are correct "committed costs" associated with your operation all of the listed answers are correct
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