Question: SHOW SOLUTION. Consider these Make or Buy alternatives: Make: Annual fixed cost (rent + capital) is $2000. Unit variable cost (labor+material+transportation) is $10/ raft. Sales



SHOW SOLUTION. Consider these Make or Buy alternatives: Make: Annual fixed cost (rent + capital) is $2000. Unit variable cost (labor+material+transportation) is $10/ raft. Sales price is $20/raft Buy: Annual fixed costs is $9000. Unit variable cost is $5/raft. Sales price is $20/raft. At what demand quantity they will be indifferent between MAKE and BUY alternatives? Show your solution below with all labels and units. For Q24, Select the correct answer. Consider these Make or Buy alternatives: Make: Annual fixed cost (rent + capital) is $2000. Unit variable cost (labor+material+transportation) is $10/ raft. Sales price is $20/raft Buy: Annual fixed costs is $9000. Unit variable cost is $5/ raft. Sales price is $20/ raft. At what demand quantity they will be indifferent between MAKE and BUY alternatives? 200 rafts 600 rafts 1200 rafts 1400 rafts MULTIPLE ANSWERS QUESTION: As related to Q25 Make or Buy alternatives, which statement(s) are TRUE when deciding between MAKE and BUY? If demand is over 200 units, BUY is favorable due to lower fixed cost If demand is over 1400 units, MAKE is favorable due to lower fixed cost If demand is over 1400 units, BUY is favorable due to lower unit variable cost If demand is less than 1400 units, MAKE is favorable due to lower fixed cost If demand is less than 200, BUY is favorable due to lower fixed cost
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