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 |
Based solely on the cost, for what quantity (units per year) would the firm be indifferent between buying or making (i.e., same cost for buying or making)?
- A. 15,000 units
- B. 20,000 units
- C. 25,000 units
- D. 60,000 units
- E. None of the above
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