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, $20,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying?

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, $20,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying?

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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, $20,000 of the fixed costs can be avoided. At what external price for the 100 units is the company indifferent between making or buying?

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