Even though they might not be one of the big name hospitals, (or the oligopolies in the market) they have a successful lifetime in the market due to the high demand for emergency response. that is why the healthcare system is very unique, in most markets where there are leading businesses kind of taking charge of the market, it drastically affects the smaller or less popular businesses in the market. for example if it is a product, a lot of people will explore their options, do research, and go with the best pick, however when an emergency occurs, people don't always have that luxury therefore all hospitals get adequate business from its community.

Make or buy eastside company incurs a total cost of $120,000 in producing 10,000 units of a component needed in the assembly of its major product. the component can be purchased from an outside supplier for $11 per unit. a related cost study indicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. a. should eastside buy the component if it cannot otherwise use the released capacity? present your answer in the form of differential analysis. use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. cost from outside supplier $answer variable costs avoided by purchasing answer net advantage (disadvantage) to purchase alternative $answer b. what would be your answer to requirement (a) if the released capacity could be used in a project that would generate $50,000 of contribution margin? use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers.