Homework Answers
Total cost to make = $10,000 + $20,000 + $25,000 + $50,000 = $105,000
Total cost to buy = (5,000 X $15) + $47,000 - $12,000 = $110,000
Total cost to make the units is lower than total cost to but the units. By making the units, $5,000 can be saved.
Make, net income will increase $5,000 greater.
1st option.
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