162k views
3 votes
Given the following, determine if a buy price of $4.00 per unit for 3,000 units should be accepted or if the company should continue to make the units. Total variable costs of making the units (materials, labor, and overhead) equal $11,100, and total fixed costs are $3,500. Of the fixed costs, $1,500 is avoidable if the units are purchased. Based on price, the company should (make/buy) Blank 1 Blank 1 buy, Correct Unavailable the units at a net benefit of $

User Ronny
by
3.6k points

1 Answer

3 votes

Answer: buy, 600

Step-by-step explanation:

User Scott Mitchell
by
3.0k points