Question
Dell Industries is an electronics company that currently manufactures 42,900 units of Part CPU each month for use in production. The facilities now being used
Dell Industries is an electronics company that currently manufactures 42,900 units of Part CPU each month for use in production. The facilities now being used to produce Part CPU have fixed monthly cost of $193,050 and a capacity to produce 66,000 units per month. If Dell Industries were to buy Part CPU from an outside supplier, the facilities would be idle, but its fixed costs would continue at 60% of their present amount. The variable production costs of Part CPU are $15 per unit.
Do not enter dollar signs or commas in the input boxes. Do not use the negative sign. Round all answers to 2 decimal places. a) What is the cost to Dell Industries to manufacture Part CPU at its current level of production? Variable cost per unit: $Answer Fixed cost per unit: $Answer Total cost to manufacture: $Answer b) If Dell Industries continues to need 42,900 units of Part CPU each month, but wants to purchase it from an outside supplier, what is the maximum price they would be willing to pay for this part? Variable cost savings per unit: $Answer Fixed costs savings per unit: $Answer Maximum price per unit: $Answer
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