Robbins Co.has been producing a part for a camera they manufacture.The costs for this part are as follows: Robbins has an opportunity to purchase this part rather than manufacture it.To purchase the part will cost $3 a unit.If the part is purchased,fixed costs will be reduced by 20%.
Should Robbins Co.make or buy this part.Show how you arrived at your decision.

Question

Robbins Co.has been producing a part for a camera they manufacture.The costs for this part are as follows:  Robbins has an opportunity to purchase this part rather than manufacture it.To purchase the part will cost $3 a unit.If the part is purchased,fixed costs will be reduced by 20%.
Should Robbins Co.make or buy this part.Show how you arrived at your decision.

Quizplus · Accepted Answer

The Answer of Robbins Co.has been producing a part for a camera they manufacture.The costs for this part are as follows:  Robbins has an opportunity to purchase this part rather than manufacture it.To purchase the part will cost $3 a unit.If the part is purchased,fixed costs will be reduced by 20%.
Should Robbins Co.make or buy this part.Show how you arrived at your decision.