The Nut Depot makes fan gear for Buckeye fans around the globe. One of its products is a tie dye t-shirt which requires special processing. It sells for $25. Currently, The Nut Depot outsources this process to a supplier. The supplier charges $10 per tshirt to process. The operations manager has suggested looking into buying the machines and making the shirts in-house. After receiving quotes for equipment and parts, it seems that there would be an annual fixed cost of $10,000 to purchase and install the equipment, and each t-shirt would then cost $9 to make. The annual demand for these shirts is 12,000. How much could the Nut depot save by making the correct make vs. buy decision

Answer rating: 100% (QA)

To determine the savings from making the correct make vs buy decision we need to compare t... View the full answer