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A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is provided below: For
A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is provided below: For in-house manufacturing: Annual fixed cost = $90,000 Variable cost per part = $170 For purchasing from supplier: Purchase price per part = $180 a. If demand is forecast to be 6,000 parts, should the firm make the part in-house or purchase it from a supplier? Round your answer to the nearest whole number. Break-Even Quantity: parts The best decision is to -Select- b. The marketing department forecasts that the upcoming year's demand will be 6,000 parts. A new supplier offers to make the parts for $178 each. Should the company accept the offer? Round your answer to the nearest whole number. New Break-Even Quantity: parts The best decision is to -Select- C. What is the maximum price per part the manufacturer should be willing to pay to the supplier if the forecast is 6,000 parts? Round your answer to the nearest cent. $
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