Demand and Cost Inputs

Buy Price

The buy option uses a fixed per-unit purchase price.

highlighted = computed this step

Buy Price

Buying costs 6 per unit.

buy price=6\text{buy price}=6
Cost inputsThe comparison starts with deterministic demand and per-unit costs.make-or-buy inputsvaluedemand100make fixed200make variable3buy price6

Same Demand

Both options are compared at the same demand.

compare options at the same demand\text{compare options at the same demand}
Make-or-buy comparisonThe chart recomputes base costs, break-even demand, and the what-if.make-or-buy cost 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