Answer to Question #316182 in Management for Shine

Question

pooja is deciding whether to make 500 units of input A or buy them for from a supplier for $5 each .in her Factory she is currently producing 1000 ABC products and selling them for $30 each. she has received an offer to produce 200 more ABC products with her idle factory space, selling foe $30 a piece . assuming poojas fixed costs will remain remain same at $5000 for the factory space and the variable costs $4 per input-A produced and $15 per ABC product produced, should pooja make or buy input? 

Answer 1

Pooja should make an input.