Problem Company XYZ can produce a product for $40 per unit. Equipment investment per unit is $20, labor $10, raw materials $8 and fixed overhead $2. XYZ can purchase the product from ABC Industries for $35. We still have an equipment cost of $15 when we receive the product. 

Should XYZ outsource and purchase the manufacture of the product?

Answer rating: 100% (QA)

Answer i Relevant costs per unit to produce Raw mater... View the full answer