Question: A common bracket can be purchased in large quantities for $0.67. The company can make the bracket at a variable cost of $0.41 by buying
- A common bracket can be purchased in large quantities for $0.67. The company can make the bracket at a variable cost of $0.41 by buying a machine for $33000. Demand over the next two years (the anticipated life of the product and the machine) is estimated to be normally distributed with mean of 100,000 units and a standard deviation of 10,000 units. Would you recommend making or buying this bracket?
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