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ABC Uniforms Currently Buys Uniforms and Customizes Them for Specific

question 71

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ABC Uniforms currently buys uniforms and customizes them for specific teams.The uniform manufacturer is hard to deal with and has refused to negotiate a reasonable price.ABC Uniforms already has the equipment to customize the uniforms.Perhaps the company should begin to make the basic uniforms in-house.What term refers to this type of decision?


Definitions:

Break-even Sales

The amount of revenue required to cover total fixed and variable costs, resulting in a profit of zero.

Unit Selling Price

The price for which a single unit of a product is sold, not including any additional fees or charges.

Fixed Costs

Expenses that do not change in response to the level of goods or services produced by the business, such as rent or salaries.

Operating Income

Represents the amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold from gross revenue.

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