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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!