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Your company makes outdoor furniture from scratch - that is to say, you currently make all components for the furniture from their raw materials (
Your company makes outdoor furniture from scratch that is to say, you currently
make all components for the furniture from their raw materials sheet metal, paint,
nuts & bolts, etc.
Component A of which you make units per month, costs you $ in
variable costs per unit and $ per unit in fixed costs, for a total cost of $ per
unit based on the units per month.
A supplier has offered to sell you units per month of component A for
$ per unit. Assuming the "dollars and cents" work out to accept the offer, what
other factors should you consider before accepting the offer?
all of the listed answers are correct
none of the listed answers are correct
quality of the supplier's product compared to your own product
ability of the supplier to deliver componen SEE PICTURE
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