Galley Industries can produce 500 units of a necessary component part with the following costs: If Galley Industries purchases the component externally, $3,000 of the fixed costs can be avoided.Below what external price for the 500 units would Galley choose to buy instead of make?

Question

Galley Industries can produce 500 units of a necessary component part with the following costs:  If Galley Industries purchases the component externally, $3,000 of the fixed costs can be avoided.Below what external price for the 500 units would Galley choose to buy instead of make?

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The Answer of Galley Industries can produce 500 units of a necessary component part with the following costs:  If Galley Industries purchases the component externally, $3,000 of the fixed costs can be avoided.Below what external price for the 500 units would Galley choose to buy instead of make?

Galley Industries Can Produce 500 Units of a Necessary Component