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A company is planning to introduce a new portable computer to its existing product line.Management must decide whether to make the computer case or buy it from an outside supplier.The lowest outside price is $90.If the case is produced internally,the company will have to purchase new equipment that will yield annual depreciation of $130,000.The company will also need to rent a new production facility at $200,000 a year.At 20,000 cases per year,a preliminary analysis of production costs shows the following: Required:
(1)Determine whether the company should make the cases or buy them from the outside supplier.
(2)What other factors,besides cost,should the company consider?
Situational
Depending on or relating to a specific set of circumstances or context, often implying that different situations require different responses or actions.
Consensus Behaviour
Actions or attitudes adopted by a group as a whole, reflecting a common agreement or shared opinion among its members.
Dispositional Attribution
The tendency to attribute someone's behavior to their personal traits or disposition, overlooking external factors.
Resignation
The act of giving up a job or position, often formally through a written notice.
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