Question: 2. Given the following data for a make-or-buy decision: Alternative Buy Make Fixed Costs S0 per year $150,000 per year Variable Costs $10 $7 a.

2. Given the following data for a make-or-buy decision: Alternative Buy Make Fixed Costs S0 per year $150,000 per year Variable Costs $10 $7 a. What are total costs to buy AND make a quantity of (a) 12,000 units AND (b) 40,000 units per year? b. What is the indifference quantity point? c. DRAW AND LABEL A GRAPH SHOWING THE INDIFFERENCE POINT, AND THE MAKE AND BUY DECISIONS

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