Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7- A part is to be used in the assembly of a product. Alternative 1 is to manufacture it in-house and alternative 2 is to

image text in transcribed
7- A part is to be used in the assembly of a product. Alternative 1 is to manufacture it in-house and alternative 2 is to purchase from outside, Determine the break-even quantity per year between the two alternatives using the data gven in the table and i=10%. [Note: You may use TC=FC,+v;Q and TC1=TC2 per year] Alternative 1: A machine will be needed for production. Initial cost of the Manufacture machine will be P=$72,000 and salvage value will be F=$8000 the Part dollars after 6 years of life. The variable production cost will be V1=$1.6 per unit. Alternative 2: Purchase the The part will be purchased at a cost of v2=$6 per unit. part from Outside a) 4568 Units b) 3522 Units 1364 Units d) @ 1500 Units e) 12000 Units Leave blank

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Industries Of The Future

Authors: Alec Ross

1st Edition

1476753660, 9781476753669

More Books

Students also viewed these Economics questions

Question

Why is it safe to declare named constants public?

Answered: 1 week ago