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Robinson Crusoe Was Trying to Decide If They Should Continue

Question 7

Multiple Choice

Robinson Crusoe was trying to decide if they should continue making candy machines or outsource to a supplier. Their fixed costs to make them in house were $3,750, and the variable costs were $1.35 per unit. One of their suppliers in Mexico made a similar product for $5.75 per unit.
-If Robinson needed 600 units, calculate their make cost.


A) $5,750
B) $5,100
C) $3,450
D) $4,560
E) $4,900

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