A department in the facility required 12,250 units of raw materials to produce a TV. The...

A department in the facility required 12,250 units of raw materials to produce a TV. The company is deciding wither to buy or make raw materials. The fixed and variable cost of building (manufacturing) the raw materials are $20,000 and $5, respectively. Also, the fixed and variable costs for buying the raw materials are $400 and $7, respectively. Use the breakeven analysis methods to decide if the company has to purchase or manufacture the raw materials.

Non of the above
		The company must purchase the raw materials
		The company must make the raw materials
		It will cost the company the same to make or buy the raw materials

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Expert Solution

Ally Wells answered 1 year ago

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