Essay
A company has two alternatives for meeting a customer requirement for 5,000 units of a specialty molding. If done in-house, fixed cost would be $350,000 and variable cost is $20 per unit. Alternative two is to outsource for a total cost of $40 per unit. Determine the break-even quantity and determine if they should make the item in-house or outsource it.
Correct Answer:
Verified
VC1 = $20
VC2 = $40
FC = $350,000
Break-ev...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
VC2 = $40
FC = $350,000
Break-ev...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q57: A vertical integration strategy generally reduces the
Q58: A manufacturing company needs to know
Q59: Define multinational enterprises. What challenges do they
Q60: Value chain integration for goods-producing firms requires
Q61: Explain the notion of value chain integration.
Q63: The operational structure of a value chain
Q64: In break-even analysis, whenever the anticipated volume
Q65: A U.S. motorcycle manufacturer has the
Q66: _ is the process of managing information,
Q67: The success of the entire value chain