A start-up mobile phone manufacturer who produces mother boards has fixed of $320,000 per year and variable costs are $1l per unit. An outside firm can bu same wheel chair at a cost of $22 per unit with annual fixed costs of $6,000. Considering cost alone - what is the quantity where making the wheel chairs an buying them are equal? Round your answer to the nea

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ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Proudction Costs
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A start-up mobile phone manufacturer who produces mother boards has fixed costs
of $320,000 per year and variable costs are $1l per unit. An outside firm can build the
same wheel chair at a cost of $22 per unit with annual fixed costs of $6,000.
Considering cost alone - what is the quantity where making the wheel chairs and
buying them are equal?
Round your answer to the nearest
whole number, no decimals.
If demand is expected to be 25,000 should we make or buy? |1
Enter either the word make or the word buy
Round your answer to the nearest whole number, no decimals.
Transcribed Image Text:A start-up mobile phone manufacturer who produces mother boards has fixed costs of $320,000 per year and variable costs are $1l per unit. An outside firm can build the same wheel chair at a cost of $22 per unit with annual fixed costs of $6,000. Considering cost alone - what is the quantity where making the wheel chairs and buying them are equal? Round your answer to the nearest whole number, no decimals. If demand is expected to be 25,000 should we make or buy? |1 Enter either the word make or the word buy Round your answer to the nearest whole number, no decimals.
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