Question

Robert Company is considering buying an input to its main product from an outside supplier, rather than producing the input itself. If Robert Company purchases the part elsewhere, it can use the capacity currently being used to produce the input to generate additional profit of $22,000. When considering this decision, Robert Co. managers should:

Answer 1

When considering this decision, Robert Co. managers should: Include the $22,000 as cost of making the input.

Buying or producing an input

Based on the given scenario the company should include the amount of $22,000 the as cost of making the input.

Including the $22,000 as both the cost price of producing or making the input as well as the benefit the company will derived assuming the company purchase the input from an outsider supplier is the best decision that Robert Co. managers should do.

Inconclusion when considering this decision, Robert Co. managers should: Include the $22,000 as cost of making the input.

Learn more about buying or producing an input here:brainly.com/question/3964664