Question: Given the following data, determine tire total annual cost of making and of buying from each of vendor A and B. Estimated demand is 15,000

Given the following data, determine tire total annual cost of making and of buying from each of vendor A and B. Estimated demand is 15,000 units a year. Which alternative is best?

Make endo Vendor B Variable cost per ni Annual fixed cost 8 $20,000 $11 0 10 $5,000 (annual charge)

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