Answer-------------$40,000
Net advantage = $40000
Working
Differential Analysis | ||
Make | Buy | |
Variable production cost | $ 240,000 | |
Avoidable Fixed overhead | $ 50,000 | |
Purchase price | $ 360,000 | |
Additional benefit from Buying from outside | -$ 30,000 | |
Total relevant Cost | $ 290,000 | $ 330,000 |
.
Total Cost of Buying | $ 330,000 |
Total Cost of manufacturing | $ 290,000 |
Benefit from buying | $ 40,000 |
Question 2 Not complete Marked out of 1.00 P Flag question Outsourcing (Make-or-Buy) Decision Assume a division of Hewl...
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