Ohms Company manufactures plugs at $36 per unit, including $…
Ohms Company manufactures plugs at $36 per unit, including $8 of fixed overhead and $28 of variable manufacturing cost. Ohms needs 30,000 of these plugs annually (as part of a larger product it produces). Wire Company has offered to sell these units to Ohms at $33 per unit. If Ohms decides to purchase the plugs, $60,000 of the annual fixed overhead cost will be eliminated.4) (Open-ended) Besides relevant cost analysis, what strategic factors should Ohms Company consider in making make vs. buy decision?