Tex's Manufacturing Company Can Make 100 Units of a Necessary

question 21

Multiple Choice

Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: If Tex's Manufacturing Company can purchase the component externally for $190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

• A) Buy and save $5,000
• B) Make and save $5,000
• C) Make and save $15,000
• D) Buy and save $15,000

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