Question: Make Buy Annual fixed cost RM150,000 None Variable cost/unit RM60 RM80 Annual volume (units) 12,000 12,000 1. A firms manager must decide whether o make

	Make	Buy
Annual fixed cost	RM150,000	None
Variable cost/unit	RM60	RM80
Annual volume (units)	12,000	12,000

1. A firms manager must decide whether o make or buy a certain item used in the production of vending machines. Making the item would involved annual lease costs of RM150,000. Cost and volume estimates are as follows:

Given these numbers, should the firm buy or make this items?
There is a possibility that volume could change in the future. At what volume would the manager be indifferent between making or buying?

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