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elena55 [62]
3 years ago
13

Robbins Co. has been producing a part for a camera they manufacture. The costs for this part are as follows: a. Picture Robbins

has an opportunity to purchase this part rather than manufacture it. b. To purchase the part will cost $3 a unit. If the part is purchased, fixed costs will be reduced by 20%. c. Should Robbins Co. make or buy this part. d. Show how you arrived at your decision.
Business
1 answer:
Karolina [17]3 years ago
8 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

The company should buy the product.

Notes:

1. Variable cost will not be incurred in buy option as variable cost is directly linked to production quantity. In cade of no production, this will be zero.

<em>You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  </em>

Download xlsx
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