Question: The purchasing department can reduce order quantity and work with suppliers to deliver purchased items more frequently. This should lower the total inventory. Buy option

The purchasing department can reduce order quantity and work with suppliers to deliver purchased items more frequently. This should lower the total inventory. Buy option fixed cost $25,000 variable Cost $5,000, Make option Fixed cost 3000 Variable Cost $12. Required units of 4500. make break-even point is 61,000 and buy break-even point 57,000. Graph your answer.

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