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A Decision Whether to Continue to Make a Product or Buy

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A decision whether to continue to make a product or buy it externally depends on the external price and the amount of variable and fixed costs that can be eliminated assuming no alternative uses of resources.


Definitions:

EPS Growth Rate

The annual percentage change in earnings per share, indicating the rate at which a company's profit per share is growing.

Rate of Return

An investment's growth or shrinkage in value throughout a particular phase, signified as a part of the original investment sum.

Current Stock Price

The present value per share at which a stock is trading in the stock market, reflecting the most recent agreement between buyers and sellers on its price.

EPS Growth Rate

The speed of growth in a company's earnings per share (EPS) throughout a certain timeframe, showcasing the trend in the company's profitability.

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