Question: Using the graph below, interpret the procurement scenario and answer the following questions: a . What are the fixed costs for the buy decision? b

Using the graph below, interpret the procurement scenario and answer the following questions:
a. What are the fixed costs for the buy decision?
b. What is the breakeven quantity for the two options illustrated?
c. At Q =300, would you choose the make or buy option? Why?
d. At Q =200, what will be the total cost associated with the best decision at this quantity?

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