Question: Question 35 (4 points) You currently make a part on old equipment at a cost of $50,000 per year and a variable cost of $20

Question 35 (4 points) You currently make a part on old equipment at a cost of $50,000 per year and a variable cost of $20 / unit. You have found an outside supplier who will make the part for $15 / unit if you will pay their annual fixed costs of $200,000/year. The following table summarizes the details of this make versus buy decision. ALTERNATIVE Buy FIXED COST $ 200,000 per year $50,000 per year VARIABLE COST $15 per unit $20 per unit Make For what range of output would you prefer to buy? 1) 0 - 30,000 units per year O2) 30,000 or more units per year 3) 40,000 or more units per year 04) 0 - 40,000 units per year

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