firm’s manager must decide whether to make or buy a certain item used in the production of vending machines. Cost and volume estimates are as follows: Make                           Buy Annual fixed cost                      $150,000                    None Variable cost/unit                      $60                             $80 Annual Volume (units)               12,000                        12,000 Given these figures, should the firm buy or make this item? There is a possibility that volume could change in the future. At what volume would the manager be indifferent between making and buying?

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