Lasso Corporation manufactures a variety of appliances which all use Part B89. Currently, Lasso Corporation manufactures Part B89 in its internal manufacturing process. Lasso Corporation produces 9000 units of Part B89 annually. The annual costs to product Part B89 at the level of 9000 units include: All of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier. Lasso Corporation has no alternative use for its manufacturing facilities. Nadal Parts Company has offered to sell 9000 units of Part B89 to Lasso Corporation for $20.20 per unit. What should Lasso Corporation do?

Question

Lasso Corporation manufactures a variety of appliances which all use Part B89. Currently, Lasso Corporation manufactures Part B89 in its internal manufacturing process. Lasso Corporation produces 9000 units of Part B89 annually. The annual costs to product Part B89 at the level of 9000 units include:  All of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier. Lasso Corporation has no alternative use for its manufacturing facilities. Nadal Parts Company has offered to sell 9000 units of Part B89 to Lasso Corporation for $20.20 per unit. What should Lasso Corporation do?

Quizplus · Accepted Answer

The Answer of Lasso Corporation manufactures a variety of appliances which all use Part B89. Currently, Lasso Corporation manufactures Part B89 in its internal manufacturing process. Lasso Corporation produces 9000 units of Part B89 annually. The annual costs to product Part B89 at the level of 9000 units include:  All of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier. Lasso Corporation has no alternative use for its manufacturing facilities. Nadal Parts Company has offered to sell 9000 units of Part B89 to Lasso Corporation for $20.20 per unit. What should Lasso Corporation do?

Lasso Corporation Manufactures a Variety of Appliances Which All Use