Your company makes BBQs from scratch that is to say, you currently make all of the components for the BBQs from their raw materials sheet metal, paint, nuts & bolts, etc.
Component A of which you make units per month, costs you $ in variable costs per unit and $ per unit in fixed costs, for a total cost of $ per unit based on the units per month.
A supplier has offered to sell you units per month of component A for $ per unit. Assuming the relevant "dollars and cents" work out to accept the offer, what other factors should you consider before accepting the offer?
Question options:
all of the listed answers are correct
"sunk costs" associated with your operation
"committed costs" associated with your operation
none of the listed answers are correct
