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Business, 22.02.2021 21:40 madbiebzz

Gecko Company is deciding between using a supplier and making the wheels for its skateboards internally. Currently, the manufactured wheels have a variable unit cost of $2. The monthly fixed cost is $16,000, but 25% of it can be eliminated if wheels are no longer produced. A supplier has offered to produce the wheel at $3 per wheel and can produce 3,200 wheels for the 800 skateboards needed monthly. Should Gecko outsource wheels production or make them internally?

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