Question: Arbogast Printing Press needs more folding capability. They could do it inhouse with their older equipment or go with an outside vendor. Their fixed costs

Arbogast Printing Press needs more folding
Arbogast Printing Press needs more folding capability. They could do it inhouse with their older equipment or go with an outside vendor. Their fixed costs are $135,000 and the variable cost per fold is $1.25. The vendor will do the folding for $3.00 per fold. They need 100,000 folds. Should they keep it inhouse or outsource it

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