03-16-2009, 09:15 PM
1000,000 Maximum price to pay.
+300,000 Fixed Cost
-400,000 Contribution of machinery if purchased out side
=900,000 Manufacturing cost ( Fixed + Variable)
So can not go beyond 1,000,000
In my opinion option D is ok
+300,000 Fixed Cost
-400,000 Contribution of machinery if purchased out side
=900,000 Manufacturing cost ( Fixed + Variable)
So can not go beyond 1,000,000
In my opinion option D is ok