3. Suppose that a firm can produce a part it uses for $875 per unit, with a fixed cost of $75,000. The company has been offered a contract from a supplier that allows it to purchase the part at a cost of $920 per unit, which includes transportation. (a) If the anticipated production volume is 1500 units of the part, compute the total cost of manufacturing and the total cost of outsourcing. (b) What is the best decision
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “3. Suppose that a firm can produce a part it uses for $875 per unit, with a fixed cost of $75,000. The company has been offered a contract ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The market for blue jeans is in equilibrium. Blue jeans are a normal good for consumers. If a recession reduces consumers' incomes at the same time that the price of denim (an input in the making of blue jeans) increases, we can say with certainty
Answers (1)
A company has a factory in a poor area. Which is the best justifies the company's decision to ignore issues of self-actualization and self-esteem and instead focus on the basics, such as supplying people with food and shelter?
Answers (1)
How do these values change for the second payment? The portion of the payment that is applied to interest declines, while the portion of the payment that is applied to principal increases.
Answers (1)
Reaction rates do not tell you how fast a. reactants are being consumed. b. products are being formed. c. substances are changing state. d. energy is being absorbed or released.
Answers (1)
The subcontracting or contracting out of activities to external organizations that had previously been performed by the firm is called: A) Offshoring B) Insourcing C) Outsourcing D) Homesourcing
Answers (1)
New Questions in Business
In the context of the various roles employees take up in an organization, who among the following is most likely to spend a lot of their time listening?
Answers (1)
Because email, chat, and text messages are less formal methods of communication, good technical writing skills are less important for these messages. O True O False
Answers (1)
Several years ago, the United States went to war with Iraq. This led to an increase in government expenditures and a decrease in private consumption and investment. What is the total effect of these circumstances on aggregate demand?
Answers (1)
If the technology is flexible it becomes more difficult to distribute manufacturing in many local facilities. it becomes more difficult to consolidate manufacturing in a few large facilities.
Answers (1)
A person buys a flat screen, plasma, theater-like television. the person has homeowner? s insurance. why would it be appropriate to add a personal property floater to that insurance?
Answers (1)