You are asked to help your boss deciding who is considering whether to make or buy a
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Question:
You are asked to help your boss deciding who is considering whether to make or buy a part for a top most demanding product of the company.
Your company can make the component for $40 per unit or buy it for $50 per unit from vendor. If the Company decides to make the component, it will require 4 hours of machine time to make each part. The company has 2,000 hours of machine time available per month.
Required:
Should the company make or buy the component?
How many max parts company can make?
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