Solution-Determine should robbins co make or buy the part

Determine should robbins co make or buy the part

Assignment Help Managerial Accounting

Reference no: EM132500643

Robbins Co. has been producing a part for a camera they manufacture. The costs for this part are as follows:

Fixed cost 392,000
Total variable cost 112,000
Units produced 28,000

Robbins has an opportunity to purchase this part rather than manufacture it. To purchase the part will cost $3 a unit. If the part is purchased, fixed costs will be reduced by 20%.

Question 1: Should Robbins Co. make or buy this part? Show how you arrived at your decision.

Reference no: EM132500643

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Determine should robbins co make or buy the part

Reference no: EM132500643

Reference no: EM132500643

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