Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: If Tex's Manufacturing Company can purchase the component externally for $110,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?
A) Make and save $5,000
B) Buy and save $5,000
C) Make and save $15,000
D) Buy and save $15,000

Question

Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs:  If Tex's Manufacturing Company can purchase the component externally for $110,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?
A) Make and save $5,000 
B) Buy and save $5,000 
C) Make and save $15,000 
D) Buy and save $15,000

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 can purchase the component externally for $110,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?
A) Make and save $5,000 
B) Buy and save $5,000 
C) Make and save $15,000 
D) Buy and save $15,000

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