Given the following data for a make-or-buy decision: $$\begin{array} { l l l }
\text { Alternative } & \text { Fixed Cost } & \text { Variable Cost } \
\hline \text { Buy } & \$ 0 \text { per year } & \$ 8 \text { per unit } \
\text { Make } & \$ 100,000 \text { per year } & \$ 4 \text { per unit }
\end{array}$$ Which alternative would you select for a quantity of 24,000 units per year?

Question

Given the following data for a make-or-buy decision: $$\begin{array} { l l l } 
\text { Alternative } & \text { Fixed Cost } & \text { Variable Cost } \
\hline  \text { Buy } & \$ 0 \text { per year } & \$ 8 \text { per unit } \
\text { Make } & \$ 100,000 \text { per year } & \$ 4 \text { per unit }
\end{array}$$ Which alternative would you select for a quantity of 24,000 units per year?

Quizplus · Accepted Answer

The Answer of Given the following data for a make-or-buy decision: $$\begin{array} { l l l } 
\text { Alternative } & \text { Fixed Cost } & \text { Variable Cost } \
\hline  \text { Buy } & \$ 0 \text { per year } & \$ 8 \text { per unit } \
\text { Make } & \$ 100,000 \text { per year } & \$ 4 \text { per unit }
\end{array}$$ Which alternative would you select for a quantity of 24,000 units per year?

Given the Following Data for a Make-Or-Buy Decision Which Alternative Would You Select for a Quantity of 24,000