Question

Rajs company can either make the components or buy them. He should decide to make the components rather than buy them from a supplier

a. when utilization of plant capacity permits more economical production.

b. when an outside supplier specializes in the production of that component.

c. if in-house operations can concentrate on the firm's specialty--the finished product.

d. if the risk of equipment obsolescence can be transferred to the supplier.

Answer

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