Assume you are a cost analyst at Amazon, evaluating whether to make or buy a component used in the production of Kindle devices The following data is available Cost to make internally $50 per unit Cost to buy externally $45 per unit Annual demand 10,000 units Calculate the total cost for each option and determine whether Amazon should make or buy the component Present your calculations in a paragraph format, and discuss the qualitative factors that should be considered in the decision making process

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Question: Assume you are a cost analyst at Amazon, evaluating whether to make or buy a component used in the production of Kindle devices. The following

Assume you are a cost analyst at Amazon, evaluating whether to make or buy a component used in the production of Kindle devices. The following data is available:

- Cost to make internally: $50 per unit
- Cost to buy externally: $45 per unit
- Annual demand: 10,000 units Calculate the total cost for each option and determine whether Amazon should make or buy the component. Present your calculations in a paragraph format, and discuss the qualitative factors that should be considered in the decision-making process.

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