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

Question 65

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, $20,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying? A) $190,000 B) $200,000 C) $210,000 D) $220,000 If Tex's Manufacturing Company purchases the component externally, $20,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying?


A) $190,000
B) $200,000
C) $210,000
D) $220,000

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