$4/2$E$/24,3$:$34$ PM

Aopendix B Hamewark

Question $5$ Partially correct

Mark $0\mathrm{.}50$ aut of $1\mathrm{.}00$

Make or Ruy

Bark Co$,$ manufactures dog toys. The costs per unit, for $20,000$ dog toys, are as follows.

Woof Inc. has offered to sell $20,000$ dog toys to Bark Co$.$ for $$14$ per dog toy. If Bark Co$.$ accepts Woof Inc.$\text{'}$s offer, the facilities used to manufacture dog toys could be used to produce cat toys. Revenues from the sale of cat toys are estimated at $$48,000,$ with variable costs amounting to $50\%$ of sales. In addition, $$1$ per unit of the fixed overhead associated with the manufacture of dog toys could be eliminated.

What is the dollar difference between making and buying the dog toys?

$-$Note: Do not use a negative sign with your answer.

s

Should Bark Co$.$ accept Woof Inc.$\text{'}$s offer?

Yes

Partially correct

Marks for this submission: $0\mathrm{.}50/1,00.$