Slice Golf Inc. makes golf clubs that can fix anyones golf game. They will produce 5,000 clubs
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Question:
Slice Golf Inc. makes golf clubs that can fix anyone’s golf game. They will produce 5,000 clubs that each requires a special grip. Slice Golf Inc. must decide whether to make or outsource these grips. The cost to outsource the grips would be $20 per grip. To make each grip themselves, Slice Golf Inc. would incur the following costs: Prime Costs: $15 Conversion Costs: $15 Direct Labor $5 50% of the Overhead Costs are Fixed 75% of the fixed overhead applied to each grip will be incurred whether or not Slice Golf Inc. decides to make the grips themselves. What should Slice Golf Inc. do regarding whether to make or buy their grips for the clubs?
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