Final answer:
The financial advantage or disadvantage of buying 86,000 units from the supplier instead of making those units depends on the cost of production compared to the price offered by the supplier.
Step-by-step explanation:
The financial advantage or disadvantage of buying 86,000 units from the supplier instead of making those units can be determined by comparing the costs of production and the price offered by the supplier. Assuming that Cane expects to produce and sell 86,000 alphas, if the cost of producing one alpha is less than the price of $104 offered by the supplier, it would be advantageous for Cane to produce the units themselves.
On the other hand, if the cost of production is higher than the price offered by the supplier, it would be more advantageous for Cane to buy the units from the supplier.
To calculate the financial advantage or disadvantage, we need to know the cost of production per unit for Cane. If the cost of production per unit is less than $104, Cane will have a financial advantage by producing the units themselves. However, if the cost of production per unit is more than $104, it would be more financially advantageous for Cane to buy the units from the supplier.