Essay
A manufacturing company needs to know whether to make in-house or buy a roller gear assembly for its new fax machine production.The company expects to produce 9,000 units per year.The following estimates have been made:
a.What is the annual cost to make the roller gear assembly in-house?
b.What is the annual cost to buy the roller gear assembly?
c.At what volume are they indifferent regarding the decision to make or buy?
Correct Answer:
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a.Cost to make: $8,000 + $5.45...View Answer
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Correct Answer:
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