cost of producing the track assembly is as follows:

$3$ setups $-$$$1,150$ each $($The setups would be avoided, and total spending could be reduced by $$1,150$ per setup.$)$

could be totally avoided if the part were purchased.

$75$ fewer material moves at $$30$ per move.

Required:

Ignore the special study, and determine whether the track assembly should be produced internally or purchased from the supplier.

Produced internally $$

Now, using the special study data, repeat the analysis.

It is $

X II

$$ expensive to buy outside.

Which of the listed items is not a qualitative factor that would affect the decision?

The amount of cost savings that can be achieved $$

the production floor decreases, we may need to inspect the incoming parts in the receiving area. Will we actually save any inspection costs?" Is the controller right?