Question: $10 per unit 2. City Machine Inc. can make a part for an equipment at a variable cost of $15 a unit. The annual fixed

$10 per unit

2. City Machine Inc. can make a part for an equipment at a variable cost of $15 a unit. The annual fixed cost for equipment to make it is $40,000. The company found an outside supplier who will supply the part for $10 a unit if City Machine Inc. will pay the supplier's annual fixed costs of $100,000 per year (see table). ALTERNATIVE Buy Make FIXED COST $100,000 per year $40,000 per year VARIABLE COST $10 per unit $15 per unit Refer to the instruction above to, (a) Compute the total annual cost to buy (b) Compute the total annual cost to make. (c) Should City Machine Inc. make or buy

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