1.John is trying to decide whether or not to outsource (make vs. buy) a part. The production demand is 1500 units per year. There are fixed and variable costs associated with each option. There is a fixed cost of $50,000 and variable cost of $125 to make the part. There is a fixed cost of $1,000 and variable cost of $175 to buy the part.

a.Based on the general spreadsheet implementation of this problem show below, write the excel equation that should go into C12 (Cost to Make) and C13 (Cost to Buy).