BLUE Company
BLUE Company needs 10,000 units of a certain part to be used in production.If BLUE buys the part from RED Company instead of making it,BLUE could not use the present facilities for another manufacturing activity.Sixty percent (60%)of the fixed overhead applied will continue regardless of what decision is made.
The following quantitative information is available regarding the situation presented:

Refer to BLUE Company.Which alternative is more desirable for BLUE and by what amount?
A)Buy,$40,000
B)Make,$40,000
C)Buy,$50,000
D)Make,$50,000

Question

BLUE Company
BLUE Company needs 10,000 units of a certain part to be used in production.If BLUE buys the part from RED Company instead of making it,BLUE could not use the present facilities for another manufacturing activity.Sixty percent (60%)of the fixed overhead applied will continue regardless of what decision is made.
The following quantitative information is available regarding the situation presented:

Refer to BLUE Company.Which alternative is more desirable for BLUE and by what amount?
A)Buy,$40,000 
B)Make,$40,000 
C)Buy,$50,000 
D)Make,$50,000

Quizplus · Accepted Answer

The Answer of BLUE Company
BLUE Company needs 10,000 units of a certain part to be used in production.If BLUE buys the part from RED Company instead of making it,BLUE could not use the present facilities for another manufacturing activity.Sixty percent (60%)of the fixed overhead applied will continue regardless of what decision is made.
The following quantitative information is available regarding the situation presented:

Refer to BLUE Company.Which alternative is more desirable for BLUE and by what amount?
A)Buy,$40,000 
B)Make,$40,000 
C)Buy,$50,000 
D)Make,$50,000

BLUE Company BLUE Company Needs 10,000 Units of a Certain Part to Part