What would be the monthly operating advantage (disadvantage) of purchasing the goods internally, assuming the external supplier increased its price to $50 per pound and the Production Division is able to utilize the facilities for other operations, resulting in a monthly cash-operating savings of $30 per pound

The monthly operating advantage of purchasing internally is $20

Explanation:

Judging from an opportunity perspective,the company pays $50 when he purchases externally and as a result saves $30,in essence the company incurs $20($50-$30) more when it purchases externally.

No doubt that if the situation reverses itself, the company gains $20 if produces and sells internally as against purchasing from external party.

From the foregoing,it is obvious that the monthly operating advantage of purchasing goods internally is a  cash saving of $20 per item

Hence, buying internally is more desirable and preferred option

c

explanation:

typically a loft will include modern kitchen and bathrooms, this increases the price tag. lofts also have a good amount of open space, this requires more heating and electricity. lofts are also in older buildings, this means that maintaining the location increases the bill. keep in mind this is without talking about the high state and property taxes.

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