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5. ABC metal work company produces parts that are shipped nationwide. It has an opportunity to produce plastic packing cases which are currently purchase at 0.70 Br. each. Annual demand for the product depends largely on economic conditions & this has been estimated at 45,000 units. If the company produces the cases itself, it must re-innovate on existing area & should purchase a molding machine which will result in an annual fixed cost of 12,,000 Br. Variable costs for labor, material & factory overhead are estimated at 0.65 Br./case. Required: a) Should the company Make or Buy the cases. b) At what volume, it is more profitable to produce in house rather than purchase from an outside suppliers
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