Aubrey is thinking about starting a small business and is trying to assess the potential opportunities and threats associated with a new start-up. she has talked with friends about her plans, and several have offered opinions and advice. the comments of four friends are summarized below. which of these statements would probably be the most to aubrey? don't worry about your lack of business experience and limited business skills. entrepreneurs can make up for a lack of skills with enthusiasm and hard work. find a market segment that you can profitably serve but which is too small to attract larger companies. hang in there. if a business is going to fail, it almost always happens in the first year. if you can stick it out for more than a year, you'll be on your way to success. since your company will be small and new, it's important to impress your customers. spend a lot of money on upscale offices and state-of-the-art equipment to create a "wow" factor.

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.