Bryan Inc. is considering whether to make a component intern…
Bryan Inc. is considering whether to make a component internally or buy it from an outside supplier. The cost to make the part is $8 per unit, which includes $5 in variable costs and $3 in allocated facility fixed costs. The supplier offers to sell the part to Bryan Inc. for $6 per unit. If the facility costs will remain unchanged regardless of the decision, what is the best decision for Bryan Inc. based on a quantitative analysis?