Question
A company has two alternatives for meeting a customer requirement for 830,000 units of a part used in office printers. If done in-house, fixed cost
A company has two alternatives for meeting a customer requirement for 830,000 units of a part used in office printers. If done in-house, fixed cost would be $1,300,000 with variable cost at $1.50 per unit. Alternative two is to outsource for a total cost of $3.20 per unit. Determine the break-even point. Round your answer to the nearest whole number.
units
Determine if they should make the item in-house or outsource it. Round your answers to the nearest dollar.
Total cost if done in-house: $
Total cost if outsourced: $
So, the company should -Select-do the work in-houseoutsource the workItem 4 and save $ .
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started