Answered step by step
Verified Expert Solution
Question
1 Approved Answer
D. Try to choose the correct answer, note that four wrong answers will cancel one correct answer (i.e. each wrong answer will be penalized by
D. Try to choose the correct answer, note that four wrong answers will cancel one correct answer (i.e. each wrong answer will be penalized by -1 pt.): [ 4 pts. ] XEON Electronics is trying to reduce supply chain risk by making more responsible make-buy decisions through improved cost estimation. A high-use component can be purchased for $22 per unit with delivery promised within a week. Alternatively, XEON can make the component in-house and have it readily available at a material cost of $7 per unit, if equipment costing S165,000 is purchased. Labor and other operating costs are estimated to be $35,000 per year over the study period of 5 years. Salvage is estimated at 9% of first cost and interest is assumed to be 7% per year. Which of the following value is closest to the break- even quantity? Select one: O a. 3,633 b. 4,844 O c. 6,297 d. 6,782
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