Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Currently Jupiter is trying to reduce its supply chain risk by making more responsible make- or-buy decisions through improved cost estimation. At the same time,

image text in transcribed

Currently Jupiter is trying to reduce its supply chain risk by making more responsible make- or-buy decisions through improved cost estimation. At the same time, it is also seeking to maximize its profit A high-valued component for making its best-selling product can be purchased for $33 per unit and has expected usage of 7840 units per year. Alternatively, Jupiter can make the component in-house and have it readily available at a cost of $11.5 per unit, using a machine purchased by $213,000. It is predicted that the machine has a depreciable amount of $13,000 at the end of year 6. Labor and other maintenance costs are estimated to be $53,560 per year over the study period of 8.5 years. Jupiter uses SYD method in order to calculate the depreciable costs for all the equipment it has. The fixed cost is $43,661 per month and the variable cost is $54 per unit, (i=17%). i) Choose the best alternative to reduce the supply chain risk. il) Show that the selected alternative maximizes its profit. SECTION-2 The answer script of this section will be uploaded to the concerned course teacher's soogle

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_2

Step: 3

blur-text-image_3

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

Fundamentals Of Futures And Options Markets

Authors: John Hull

9th Global Edition

1292422114, 9781292422114

More Books

Students also viewed these Finance questions

Question

How can you develop media literacy?

Answered: 1 week ago