2. If it costs $100,000 to operate a factory monthly that makes doodads for $42 variable cost each or the company can purchase the doodads for $50 each with no fixed costs what is the difference in monthly cost between the make or buy options if the monthly volume is forecasted to be 10,000 doodads?
2. If it costs $100,000 to operate a factory monthly that makes doodads for $42 variable cost each or the company can purchase the doodads for $50 each with no fixed costs what is the difference in monthly cost between the make or buy options if the monthly volume is forecasted to be 10,000 doodads?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer both of the questions.
Number of Workers | Monthly Fixed Costs | Range of Outputs |
1 | 60 | 0 to 50 |
3 | 120 | 51 to 150 |
5 | 200 | 151 to 250 |
1. Using the table above, what is the break-even point for 3 workers?
1. |
42 |
|
2. |
60 |
|
3. |
30 |
|
4. |
100 |
2. If it costs $100,000 to operate a factory monthly that makes doodads for $42 variable cost each or the company can purchase the doodads for $50 each with no fixed costs what is the difference in monthly cost between the make or buy options if the monthly volume is
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