Raj's company can either make the components or buy them. He should decide to make the components rather than buy them from a supplier
A. when utilization of plant capacity permits more economical production.
B. when an outside supplier specializes in the production of that component.
C. if in-house operations can concentrate on the firm's specialty--the finished product.
D. if the risk of equipment obsolescence can be transferred to the supplier.
Answer: A
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