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Business, 11.03.2021 03:40 bdjdbjdjid200
Please help me I will mark brilliant please help
Currently the ABC Company manufactures a component that is used in the
production of their product. The variable cost in the manufacture of this component
is $150,000 and the fixed cost is $50,000. An outside company can manufacture the
component for $175,000 and ABC then can rent the space used to manufacture the
component to earn $50,000.
Should ABC continue to make the part or buy it from the outside company? Identify
the opportunity cost in this situation if one does exist.
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