Question: 5. A manager must decide whether to make or buy a certain item used in the production of vending machines. Cost and demand estimates are

5. A manager must decide whether to make or buy a

5. A manager must decide whether to make or buy a certain item used in the production of vending machines. Cost and demand estimates are as follows: Buy Annual fixed cost Variable cost/unit Annual demand (units) Make $150,000 $60 12,000 $0 $80 12,000 a. Given these numbers, should the company buy or make this item? b. There is a possibility that demand could change in the future. At what quantity would the manager be indifferent between making and buying

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