Given the Following Data for a Make-Or-Buy Decision What Are Total Costs to Buy a Quantity of 15,000

question 7

Short Answer

Given the following data for a make-or-buy decision: $$\begin{array} { l l l } \text { Alternative } & \text { Fixed Cost } & \text { Variable Cost } \\\hline \text { Buy } & \$ 0 \text { per year } & \$ 8 \text { per unit } \\\text { Make } & \$ 100,000 \text { per year } & \$ 4 \text { per unit }\end{array}$$ What are total costs to buy a quantity of 15,000 units per year?

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Definitions:

Accommodate

To make suitable or compatible adjustments or modifications to something or someone to fit a particular situation or need.

Unconsciously Craves

Desires or wants that individuals are not fully aware of but influence their behavior and decisions.

Positive Feedback

A process in which the effects of a small disturbance on a system include an increase in the magnitude of the perturbation.

Innate Talent

Natural abilities or proficiency in certain activities or fields present from birth or without the need for learning.