-24. Make or buy decision Premier Company manufactures gear model G37, which is used in...
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-24. Make or buy decision Premier Company manufactures gear model G37, which is used in several of its farm-equipment products. Annual production volume of G37 is 20,000 units. Unit costs (LO2 for G37 are as follows: Alternatively, Premier can purchase gear model G37 from an outside supplier for $120 per unit. If G37 is outsourced. Premier can use the ficility where G37 is currently manufactured for production of another gear-model G49. This would save Premier $113,000 in facility rental and other costs presently incurred. Required Should Premier make or buy G37? By how much will Premier be better off by choosing you decision rather than the alternative
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