A company has two alternatives for meeting a customer requirement for 880,000 units of a part used
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A company has two alternatives for meeting a customer requirement for 880,000 units of a part used in office printers. If done in-house, fixed cost would be $1,400,000 with variable cost at $1.90 per unit. Alternative two is to outsource for a total cost of $3.50 per unit. Determine the break-even point and determine if they should make the item in-house or outsource it.
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Related Book For
Operations And Supply Chain Management
ISBN: 9780357131695
2nd Edition
Authors: David A. Collier, James R. Evans
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