Exhibit 22-4 Lauria Electronics has excess capacity that could be used to make 2,000 antennas for the cell phones that the company produces. The following cost figures are available:
Lauria can buy the antennas from an outside supplier for $10.50.
Refer to Exhibit 22-4. Given the data above, if Lauria has idle facilities with no alternative use, it should:

Question

Exhibit 22-4 Lauria Electronics has excess capacity that could be used to make 2,000 antennas for the cell phones that the company produces. The following cost figures are available:
 Lauria can buy the antennas from an outside supplier for $10.50.
Refer to Exhibit 22-4. Given the data above, if Lauria has idle facilities with no alternative use, it should:

Quizplus · Accepted Answer

Since Lauria has excess capacity with no alternative use, it would be best for the company to make the antennas instead of buying them from an outside supplier. The cost to make the antennas is lower than the cost to buy them, so Lauria will save money by making them in-house.

Exhibit 22-4 Lauria Electronics Has Excess Capacity That Could Be