Sourabh Gupta can purchase copper bottles for $ 34 per piece and can manufacture it in house where the fixed and variable cost are $ 51,000 and $ 19 respectively. If the market demand for the bottles is 4500 units for a month, ascertain that whether it would be economical  to make the product in house rather than sourcing it .

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter15: Retailing, Direct Marketing, And Wholesaling
Section15.1: L.l.bean: Open 24/7, Click Or Brick
Problem 3VC
icon
Related questions
Question

Sourabh Gupta can purchase copper bottles for $ 34 per piece and can manufacture it in house where the fixed and variable cost are $ 51,000 and $ 19 respectively. If the market demand for the bottles is 4500 units for a month, ascertain that whether it would be economical  to make the product in house rather than sourcing it .

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MARKETING 2018
MARKETING 2018
Marketing
ISBN:
9780357033753
Author:
Pride
Publisher:
CENGAGE L