Hoffman Containers manufactures a variety of boxes used for packaging. Sales of its Model A20 box have increased significantly to a total of 470,000 A20 boxes. Hoffman has enough existing production capacity to make all of the boxes it needs. The variable cost of making each A20 box is $0.71. By outsourcing the manufacture of these A20 boxes, Hoffman can reduce its current fixed costs by $98,700. There is no alternative use for the factory space freed up through outsourcing, so it will just remain idle.

Question Help Hotman Containers manufactures a variety of bones used for packaging Sales of its Model A20 box have increased significantly to a total of 470,000 AJO E Hoffman has enough ing production capacity to make for the best needs. The cost of making each A20 box is 50 71. By outsourcing the manufacture of these A20 bones, Hotman can reduce current fed costs by 58,700. There is no eative for the factory space freed up through outsourcing, so it will remain idie. What is the maimum Hoffman will pay per Model A20 box to outsource production of this box? Begin by identifying the basic formula that is used to determine the Indiferent outsourcing cost perunt Contmaking A20 boxes Costitu ing A20 boxes Using the basic formula you determined above solve for the indifferent t rong cost per unit The maximum Hotman will pay out our production of its A20 boxes is 5 Hoffman would be inden beren outsourcing and making the Ado boxes if the per 20 box. Therefore, Homan will only be willing to pay S sourcing price was per A20 Box fooding Hoffman Containers manufactures a variety of boxes used for packaging Sales of its Model A20 box have increased significantly to a total of 470 000 A 20 boxesHotman has enough existing production capacity to make all of the banesit needs. The variable cost of making each A20 box is 0.71. By outsourcing the manucure of Pose A20 bos, Holan can reduces Current Reed costs by S98.700. There is no amatives for the factory space freed up through outsourcings will just remainide What is the maximum Hoffman will pay per Model A20 box to outsource production of this box? Begin by identifying the basic fomula this used to determine the interent outsourcing cost per unk. Costil making A 20 bors Contifouling A20 boxes Using the basic you determined above solve for the indifferent outsourcing cost per unit. The maximum Hoffman will pay to outsource production of 20 b i s Homan would be indifferent between outsourcing mang the A20 boxes of the cursourcing price was per 20 box. Therefore, Hoffman will only be willing to pay per A20 box routsourcing