Purchase price is $35 for a part that can be manufactured for $33; the $33 manufacturing costs include $5 per unit fixed cost. What is the savings to make rather than to buy?
Answer to relevant QuestionsIdentify the different types of business firms and other organizations that use cost management information, and explain how the information is used.What is a commodity? Give some examples of what you consider to be commodities and explain whether you think the company making the commodity product or service is a cost leader or a differentiator and why.Wings Diner has a box lunch that it sells on football game days at the local university. Each box lunch sells for $6, which includes $2.50 variable costs and $2.50 fixed cost plus a $1 markup. What is the lowest price Wings ...At what phase in the product sales life cycle will prices likely be the highest: introduction, growth, maturity, or decline?What is return on investment, and how is it calculated?
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