Question: Make or Buy Decision with a limiting factor: 3. The availability of Material B is limited to 8,000 kg Product X Y Z Demand (units)

Make or Buy Decision with a limiting factor: 3. The availability of Material B is limited to 8,000 kg Product X Y Z Demand (units) 2,000 2,500 4,000 Variable cost to make ($ per unit) 10 12 14 Buy-in price ($ per unit) 13 17 Kg of B required per unit 3 2 1 (included in variable cost) Which products should the company make and which should it buy? 16

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