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icang [17]
3 years ago
12

What would be the monthly operating advantage (disadvantage) of purchasing the goods internally, assuming the external supplier

increased its price to $50 per pound and the Production Division is able to utilize the facilities for other operations, resulting in a monthly cash-operating savings of $30 per pound
Business
1 answer:
slega [8]3 years ago
4 0

Answer:

The monthly operating advantage of purchasing internally is $20

Explanation:

Judging from an opportunity perspective,the company pays $50 when he purchases externally and as a result saves $30,in essence the company incurs $20($50-$30) more when it purchases externally.

No doubt that if the situation reverses itself, the company gains $20 if produces and sells internally as against purchasing from external party.

From the foregoing,it is obvious that the monthly operating advantage of purchasing goods internally is a  cash saving of $20 per item

Hence, buying internally is more desirable and preferred option

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Answer:

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Explanation:

As the company promises the population of America which is too huge, just on the study based on 20 employees of the company itself.

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Further that too the employees could be influenced to get the false results.

As since the employees could be influenced and that the results can be altered accordingly, the report is biased, and is misleading.

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