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Unformatted text preview: 3. If the company is interested in the offer because of limited capacity, I would suggest that the company produce the 100,000 boxes at 2.80 per box for a total of $280,000 and purchase 50,000 boxes at 2.85 per box for a total cost of $142,500 in order to meet demand. 4. The factors that Bronson should take into account are Will the company be able to meet demand? Will the outsource company be reliable? Will the company be able to make a profit in the long run?...
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- Spring '11
- Managerial Accounting, Total Variable Cost, labor Variable manufacturing