Given the following data, determine the total annual cost of making with each of process A and B and of buying.
Estimated demand is 9,500 units a year. Which alternative is best?
Process A Process B Buy
Variable cost per unit$ 47 $50 $49
Annual fixed cost $40,000 $33,000
Transportation cost per unit $4
The costs for making process A Variable costs = $47 * 9,500= $446,500 Add annual fixed costs = ......$40,000 Total... View the full answer