The choice of producing the component internally or purchasing the component externally is known as the make or buy decision.
A manufacturing or purchasing decision is the act of choosing whether to manufacture the product in-house or from an external supplier.
Make-or-buy decision is the act of choosing whether to manufacture the product in-house or from an external supplier. Similar to outsourcing decisions, making or buying decisions require comparing the costs and benefits of producing in-house and buying elsewhere.
ABC Manufacturing Company has a contract to supply 6,000 units of MVP. This also requires his 6,000 units of MVP essential components. The estimated cost of manufacturing these 6,000 units of the required components is approximately $234,000.
Learn more about make or buy decision here:https://brainly.com/question/13781293
#SPJ4
