Question: Ford Manufacturing has received an order from Roy Inc. for 500 sport shirts. Ford could produce the shirts or Ford could buy the shirts from
Ford Manufacturing has received an order from Roy Inc. for 500 sport shirts. Ford could produce the shirts or Ford could buy the shirts from another supplier to fill the Roy order, at $20 per shirt. The production at Ford is $10 per shirt plus $1,000 cost per batch. Which option will be preferable to Ford?
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