Base Comparison and Break-Even

Base Comparison

The base comparison computes make total, buy total, and savings exactly.

highlighted = computed this step

Make Total

Make total is 500.

make total=500\text{make total}=500
Base totalsThe table compares exact make and buy totals at base demand.base totalsvaluemake total500buy total600buy minus make100

Buy Total

Buy total is 600.

buy total=600\text{buy total}=600
Base totalsThe table compares exact make and buy totals at base demand.base totalsvaluemake total500buy total600buy minus make100

Make Saves

Make saves 100 at the base demand.

buy total−make total=100\text{buy total}-\text{make total}=100
Make-or-buy comparisonThe chart displays exact base totals and break-even demand.base comparisonmake 500; buy 600; winner makemeasurevaluemeaningdemand100unitsfixed cost200make optionvariable cost3per unitbuy price6per unitbreak-even demand200/3make equals buymakemake 500buybuy 600what-if makewhat-if make 350what-if buywhat-if buy 300base winner make by 100; what-if winner buy by 50