Solution-Should burt company make or buy component xj7

Should burt company make or buy component xj7

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Reference no: EM13492221

Burt Company makes a product that includes a component part, Item XJ7. Presently, the company purchases XJ7 from an outside supplier for $48 each. Burt Company is considering manufacturing XJ7 itself. Estimated total manufacturing costs for the yearly requirement of 1,000 units of XJ7 follow. Burt anticipates producing XJ7 in 5 batches.

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Required:

- A. Should Burt Company make or buy component XJ7?
- B. If the company could reduce the number of batches needed from 5 to 2, would your answer change? Why or why not?
- C. Discuss the additional factors Burt should consider before making this decision.

Reference no: EM13492221

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Should burt company make or buy component xj7

Reference no: EM13492221

Reference no: EM13492221

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