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Tex's Manufacturing Company Can Make 100 Units of a Necessary

Question 205

Multiple Choice

Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: If Tex's Manufacturing Company purchases the component externally, $15,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying? A) $120,000 B) $85,000 C) $115,000 D) $100,000 If Tex's Manufacturing Company purchases the component externally, $15,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying?


A) $120,000
B) $85,000
C) $115,000
D) $100,000

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