Question: Given the following data for a make or buy decision: Alternative Fixed Cost Variable Cost Buy $0 per year $12 per unit Make $100,000 per

Given the following data for a make or buy decision:

Alternative Fixed Cost Variable Cost
Buy $0 per year $12 per unit
Make $100,000 per year $8 per unit

What is least possible cost if the company needs a quantity of 10,000 units per year?

  • A. $60,000
  • B. $100,000
  • C. $120,000
  • D. $150,000
  • E. None of the above

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