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Business, 24.06.2019 10:20 infoneetusinghoyg22o
You currently make a part on old equipment at a cost of $50,000 per year and a variable cost of $20 / unit. you have found an outside supplier who will make the part for $15 / unit if you will pay their annual fixed costs of $200,000/year. the following table summarizes the details of this make versus buy decision. alternative fixed cost variable cost buy $200,000 per year $15 per unit make $50,000 per year $20 per unit suppose now that there is a second outside supplier. this supplier asks a fixed cost of $170,000 per year, but is willing to negotiate about the variable cost. what variable cost level would entail that this second supplier is never going to be the best option?
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You currently make a part on old equipment at a cost of $50,000 per year and a variable cost of $20...
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