Question: Make / Buy HW ( this is not a memo HW ) . Let's pretend you are a junior buyer. Suppose that a make -

Make/Buy HW (this is not a memo HW). Let's pretend you are a junior buyer. Suppose that a make-buy decision is being made for an injection molded plastic part. In other words, do you make it yourself or do you outsource it to a supplier? The fixed costs of making this part are $200,000. The variable cost to make this part is $0.40. The lowest bid received from the pool of qualified suppliers is $0.75 per part. What is the breakeven quantity? Hint: It is the point where the total cost to manufacture equals the total cost to purchase. The information below might also help. Please interpret your results. Meaning, what decision should you make based on if you need more or less than the break even quantity? Simply email me your answer. It does not have to be very long (a couple of sentences is plenty).
 Make/Buy HW (this is not a memo HW). Let's pretend you

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!