Alpha Company is evaluating a make-or-buy decision. The unit material costs for circuit boards are $1.00 and the unit labor and allocated fixed costs are $2.00 and $4,000, respectively, for a production run of 2,000 units. If Omega Supply offers to sell completed circuit boards to Alpha Company for $4.50, and is able to supply all it needs, what is the most profitable decision for Alpha and what is the related incremental cost per unit?  

Answer rating: 100% (QA)

MakeorBuy Decision Analysis for Alpha Company Scenario Alpha Company needs to decide whether to manu... View the full answer