Answer the following question(s) using the information below.Day Star collected the following information:
Day Star can sell 25,000 units per year, at $80 each.The company also has an offer from a subsidiary to rent its plant facilities for $2,000,000.The fixed overhead will be incurred in each alternative, but there will be a savings of $150,000 in the fixed costs under the renting alternative.
-Based on the above information only, should Day Star make or buy the product or rent its facilities out?
Definitions:
Planned Termination
The intentional conclusion of a project, program, or relationship after achieving its objectives or upon reaching a predetermined end date.
Quantitative Measures
Assessments that are based on numeric data, used to quantify attributes, properties, or performance.
Fidelity Measures
Tools or indicators used to assess the accuracy or faithfulness of the implementation of a program, practice, or intervention compared to its original design.
Audit Interviews
Structured conversations conducted to assess compliance with policies, procedures, or standards.
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