Robust Ltd is deciding between making and buying a component of its cars The relevant cost to make a component of a car is $42 per unit $50,000 in avoidable fixed costs per period The relevant cost to buy this component from an external supplier is $50 per unit If the firm buys from the supplier, they can lease out their facilities for $30,000 per period At what quantity of units would the firm be indifferent between making and buying the component 9,000 units 10,000 units 9,500 units 8,000 units Please post full solutions Thank you Robust Ltd is deciding between making and buying a component of its cars The relevant cost to make a component of a car is $42 per unit $50,000 in avoidable fixed costs per period The relevant cost to buy this component from an external supplier is $50 per unit If the firm buys from the supplier, they can lease out their facilities for $30,000 per period At what quantity of units would the firm be indifferent between making and buying the component 9,000 units 10,000 units 9,500 units 8,000 units

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Question: Robust Ltd. is deciding between making and buying a component of its cars. The relevant cost to make a component of a car is $42

Robust Ltd. is deciding between making and buying a component of

Robust Ltd. is deciding between making and buying a component of its cars. The relevant cost to make a component of a car is $42 per unit + $50,000 in avoidable fixed costs per period. The relevant cost to buy this component from an external supplier is $50 per unit. If the firm buys from the supplier, they can lease out their facilities for $30,000 per period.

At what quantity of units would the firm be indifferent between making and buying

the component?

9,000 units
10,000 units
9,500 units
8,000 units

Please post full solutions. Thank you!

Robust Ltd. is deciding between making and buying a component of its cars. The relevant cost to make a component of a car is $42 per unit +$50,000 in avoidable fixed costs per period. The relevant cost to buy this component from an external supplier is $50 per unit. If the firm buys from the supplier, they can lease out their facilities for $30,000 per period. At what quantity of units would the firm be indifferent between making and buying the component? - 9,000 units - 10,000 units - 9,500 units - 8,000 units

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1. Which position would you take?

4. Is your choice different from that which you would recommend to Laura?

3. How does this fit with your preferences, career anchors, and values?