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1. Minnetonka Corporation should the bindings. 2. Minnetonka Corporation would $9.75 each because that is the cost to make the product internally. 3. At a volume of 12,500 pair, Minnetonka should the bindings. The cost of buying 12,500 pair is The cost of making 12,500 pair is 5. There are many non-quantifiable factors that Minnetonka should consider in addition to the economic factors calculated above. Among such factors are: a. The quality of the purchased bindings as compared to Minnetonka-produced bindings. b. The reliability of delivery to meet production schedules. c. The financial stability of the supplier. d. Development of an alternate source of supply. e. Alternate uses of binding manufacturing capacity f. The long-run character and size of the market. 9. All the above are non-quantifiable factors 3. At a volume of 12,500 pair, Minnetonka should the bindings. The cost of buying 12,500 pair is The cost of making 12,500 pair is Making the bindings saves variable costs of $ per pair. If sales exceed pair, it is cheaper to the bindings. 4. The cost to make 10,000 and buy 2,500 is $ Therefore, Minnetonka should choose which saves \$ 5. There are many non-quantifiable factors that Minnetonka should consider in addition to the economic factors calculated above. Among such factors are: a. The quality of the purchased bindings as compared to Minnetonka-produced bindings. b. The reliability of delivery to meet production schedules. c. The financial stability of the supplier. d. Development of an alternate source of supply e. Alternate uses of binding manufacturing capacity. 1. Minnetonka Corporation should the bindings. 2. Minnetonka Corporation would $9.75 each because that is the cost to make the product internally. 3. At a volume of 12,500 pair, Minnetonka should the bindings. The cost of buying 12,500 pair is The cost of making 12,500 pair is 5. There are many non-quantifiable factors that Minnetonka should consider in addition to the economic factors calculated above. Among such factors are: a. The quality of the purchased bindings as compared to Minnetonka-produced bindings. b. The reliability of delivery to meet production schedules. c. The financial stability of the supplier. d. Development of an alternate source of supply. e. Alternate uses of binding manufacturing capacity f. The long-run character and size of the market. 9. All the above are non-quantifiable factors 3. At a volume of 12,500 pair, Minnetonka should the bindings. The cost of buying 12,500 pair is The cost of making 12,500 pair is Making the bindings saves variable costs of $ per pair. If sales exceed pair, it is cheaper to the bindings. 4. The cost to make 10,000 and buy 2,500 is $ Therefore, Minnetonka should choose which saves \$ 5. There are many non-quantifiable factors that Minnetonka should consider in addition to the economic factors calculated above. Among such factors are: a. The quality of the purchased bindings as compared to Minnetonka-produced bindings. b. The reliability of delivery to meet production schedules. c. The financial stability of the supplier. d. Development of an alternate source of supply e. Alternate uses of binding manufacturing capacity

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