Question: Question 4 . 4 Montreal Hardware Co . is making a make - or - buy decision. The market feedback shows that the optimal price
Question
Montreal Hardware Co is making a makeorbuy decision. The market feedback shows that the optimal price for this item is $ each. If the item is outsourced to Laval Hardware Co there is virtually no cost other than the $ per unit that they would pay Laval Hardware Co Internally, they have two choices. Process A requires an investment of $ for design and equipment, but it results in a $ per unit cost. Process B requires only a $ investment, but its per unit cost is $ Regardless of whether the item is subcontracted or produced internally, there is a chance that they will sell units, and a chance that they will sell units. Draw the decision tree appropriate to the alternatives and outcomes stated. Using the decision tree and EMV, what is their best choice?
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