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3 years ago

Outsourcing (Make-or-Buy) Decision

Business

1 answer:

ivann1987 [24]3 years ago

7 0

Answer:

If the company makes the units, it will save $7,000 per period.

Explanation:

Giving the following information:

Make in-house:

Number of units= 16,000

Variable cost per unit= $22

Avoidable fixed cost per unit= $3

Buy:

Number of units= 16,000

Buying price= $27

Rent= $25,000

First, we will determine the total cost of each option:

Make:

Total cost= 16,000*(22 + 3)= $400,000

Buy:

Total cost= 16,000*27 - 25,000= $407,000

If the company makes the units, it will save $7,000 per period.

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Anna11 [10]

Answer:

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Explanation:

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Suppose the cross-price elasticity of travelling by bus and travelling by train is 0.7. If the price of traveling by bus increas

galina1969 [7]

The quantity of traveling by train would change by 28%.

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Percentage change in the quantity of traveling by train = 40 x 0.7 = 28%

To learn more about cross price elasticity, please check: brainly.com/question/26035503

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2 years ago

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2 years ago

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adoni [48]

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