(7) DBS is evaluating the alternative of manufacturing a part that is currently being outsourced from an outside supplier. The relevant information is provided below: (i) For in-house manufacturing: Uptront foved cost =553,000,000 Variable cost per part =$6750 For purchasing from supplier: Purchase price per part =$9000 What will the demand need to be in order to justify making the components in-house? (2 marks) (ii) In the event that a forecasted increase in demand does not materialize and the marketing department rather expects the demand to drop to 17,500 units next year, then what will be the maximum price per part that Das would be willing to pay to the supplier? (2 marks) (8) Going forward, if it is eventually found to be a better decision to make the components in-house, DBS will then need to select an optimal location point to set up its manufacturing facility. Given the following location information and expected material movements between several retail outlets and Page 4 of 6 T2 2022 (9) Using one or more relevant examples, explain to the Das operations manager some of the potential consequences of not understanding or considering non-quantifiable factors like local culture and practices when taking location decisions. (7) DBS is evaluating the alternative of manufacturing a part that is currently being outsourced from an outside supplier. The relevant information is provided below: (i) For in-house manufacturing: Uptront foved cost =553,000,000 Variable cost per part =$6750 For purchasing from supplier: Purchase price per part =$9000 What will the demand need to be in order to justify making the components in-house? (2 marks) (ii) In the event that a forecasted increase in demand does not materialize and the marketing department rather expects the demand to drop to 17,500 units next year, then what will be the maximum price per part that Das would be willing to pay to the supplier? (2 marks) (8) Going forward, if it is eventually found to be a better decision to make the components in-house, DBS will then need to select an optimal location point to set up its manufacturing facility. Given the following location information and expected material movements between several retail outlets and Page 4 of 6 T2 2022 (9) Using one or more relevant examples, explain to the Das operations manager some of the potential consequences of not understanding or considering non-quantifiable factors like local culture and practices when taking location decisions