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Joe is a purchasing manager, and is negotiating a contract to buy 10,000 units of material from a supplier. Joe knows that to produce the product in house (preliminary cost analysis), he would have to invest $46,000 in equipment and incur a variable cost of $5 per unit. Assuming the total fixed cost to draft a conctract with his supplier is $1000, what is the maximum purchase price that he should negotatie with his supplier? (Break even analysis, make or buy)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92316841

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