Question: 3. Based on the information in the table below, when should a firm make an item instead of outsourcing (Identify the break-even point)? Costs Make
3. Based on the information in the table below, when should a firm make an item instead of outsourcing (Identify the break-even point)?
|
Costs | Make Option | Buy Option |
| Fixed cost | $500,000 | $10,000 |
| Variable cost | $21 | $25 |
|
Costs | Make Option | Buy Option |
| Fixed cost | $500,000 | $10,000 |
| Variable cost | $21 | $25 |
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