Blue ridge bicycles uses a standard part in the manufacture of several of its bikes. the cost of producing 42,000 parts is $138,000, which includes fixed costs of $68,000 and variable costs of $70,000. the company can buy the part from an outside supplier for $3.50 per unit, and avoid 30% of the fixed costs.

It is more convenient to produce in house.

Explanation:

Giving the following information:

The cost of producing 42,000 parts is $138,000, which includes fixed costs of $68,000 and variable costs of $70,000.

The company can buy the part from an outside supplier for $3.50 per unit and avoid 30% of the fixed costs.

Produce in house:

Unitary variable cost= 70000/42000= 1.67

Fixed costs= 68000

Total cost= 138,000

Outsource:

Unitary price= 3.50

Fixed costs= (68000*0.70)= 47,600

Total cost= (3.5*42000)-47600= $194,600

It is more convenient to produce in house.

so they can see what that city is producing and to also see if they can some how get that product. like gold in africa.

answer; im thinking customer: