Question: manager must decide whether to make or buy a certain item used in the production of hoses and fittings. Cost and demand estimates are as

manager must decide whether to make or buy a certain item used in the production of hoses and fittings.

Cost and demand estimates are as follows: Make Buy Fixed cost $160,000 , $0 Variable cost/unit $60 , $80

a) If quantity is 1500 units, should the company buy or make this item?

b) In future, at what quantity would the manager be indifferent between making and buying?

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