1. How are opportunity costs incorporated into make-or-buy decisions?
2. What factors other than costs must be considered before making a make-or-buy decision?
3. What is a keep-or-drop decision? What are the relevant variables in a keep-or-drop decision?
4. What factors other than costs and revenues must be considered when making a keep-or-drop decision?
1. What is a special order decision? What variables are relevant in a special order decision?
2. What factors other than relevant costs and revenues must be considered when making a special order decision?
3. What is a make-or-buy decision? What are the relevant variables in a make-or-buy decision?
Use the following information to determine the profit equation:
Selling price per unit $ 65
Variable cost per unit 24
Fixed cost per year 260,000
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