X Corp. bought a part for $12.62 per unit. As X Corp. is considering to produce the part instead. The production line would cost $375631 per year in fixed costs. Running the line would consume $2.55 for materials and $1.19 for labor to make each unit. X Corp. pays $5000 per year to ship and inspect the parts bought from another corp. If the part is made by its own, the cost could be avoid For the coming year, X Corp expects to need 36878 of the parts.

 What is the difference in profit of making production in-house of the part?

Answer rating: 100% (QA)

To calculate the difference in profit we need to compare the total cost of ... View the full answer