Tulare Company is operating at less than full capacity. The production manager is considering using this excess capacity to make a part that he usually buys. The full costs of manufacturing the part are as follows:

Until now, Tulare has been buying 4,000 units of the part for a total of $408,000.

Question

Tulare Company is operating at less than full capacity. The production manager is considering using this excess capacity to make a part that he usually buys. The full costs of manufacturing the part are as follows:
 
Until now, Tulare has been buying 4,000 units of the part for a total of $408,000.

Quizplus · Accepted Answer

The Answer of Tulare Company is operating at less than full capacity. The production manager is considering using this excess capacity to make a part that he usually buys. The full costs of manufacturing the part are as follows:
 
Until now, Tulare has been buying 4,000 units of the part for a total of $408,000.

Tulare Company Is Operating at Less Than Full Capacity