Suppose that a firm can purchase equipment for in-house use for $250,000 and produce needed...

70.2K

Verified Solution

Question

Accounting

image
Suppose that a firm can purchase equipment for in-house use for $250,000 and produce needed parts for $10 each. Alternatively, a supplier could produce and ship the parts for $15 each. Ignoring the cost of negotiating a contract with the supplier 1. What is the breakeven point? (Just enter the number - no units, to ensure proper credit) 2. The firm expects that 45,000 parts will be needed. Based on the given information should they make or buy the part? (Just enter the word "buy" or "make" without the quotes.) 3. If the firm expects that they will need 85,000 parts, should they make or buy the part? (Just enter the word "buy" or "make" without the quotes.) Check

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students