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What is the price per unit that makes buena indifferent

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Buena Corporation operates a plant with a productive capacity to manufacture 10,000 units of its product a year. The following information pertains to the production costs at capacity:

Variable costs P 80,000

Fixed costs 120,000

Total costs P200,000

Question 1: A supplier has offered to sell 8,000 units to Buena annually. Assume no change in the fixed costs. What is the price per unit that makes Buena indifferent between the "Make" and "Buy" options?

Reference no: EM132564553

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