Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: If Tex's Manufacturing Company purchases the component externally, $15,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying?
A) $120,000
B) $85,000
C) $115,000
D) $100,000

Question

Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs:  If Tex's Manufacturing Company purchases the component externally, $15,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying?
A) $120,000 
B) $85,000 
C) $115,000 
D) $100,000

Quizplus · Accepted Answer

The Answer of Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs:  If Tex's Manufacturing Company purchases the component externally, $15,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying?
A) $120,000 
B) $85,000 
C) $115,000 
D) $100,000

Tex's Manufacturing Company Can Make 100 Units of a Necessary