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LALCULATOR PRINTER VERSION * HACE Waterways Continuing Problem 07 (Part 2) Waterways has discovered that a small fitting it now manufactures at a cost of
LALCULATOR PRINTER VERSION * HACE Waterways Continuing Problem 07 (Part 2) Waterways has discovered that a small fitting it now manufactures at a cost of $1.00 per unt could be bought elsewhere for $0.33 per unit Waterways has fixed costs of $0.20 per unit that can be eliminated by buying this unit Waterways needs 505,000 of these units each year. If Waterways decides to buy rather than produce the small fitting, it can devote the machinery and labor to making a timing unit it now buys from another company. Waterwys te proximately 500 of these units each year. The cost of the unit is $12.31. To aid in the production of this unit Waterways would need to purchase a new machine at a cost of $2.51, and the cost of producing the units would be $10.20 a unit Your answer is partially correct. Try again Without considering the possibility of making the timing unit, evaluate whether waterways shevid buy or continue to make the smalting The company should the fitting Incremental cost / (savings) will be LINE TO TWT LINE TO TEXT LIETOTEKE Your answer is incorrect. Try again What is waterways opportunity cost wie chooses to buy the small fleting and start manufacturing the timing unt? The opportunity cost LINK TO TEXT LIETOTERY LIETTE Your answer is correct. Would it be wise for Waterways to buy the fitting and manufacture the coming unit Tour The company should mating and Ciri Wild like to show Work for the Waterways Continuing Problem 07 (Part 3) your answer is partially correct. Try again. Waterways is considering the replacement of an antiquated machine that has been slowing down production because of breakdowns and added maintenance. The operations manager estimates that this machine still has 2 more years of possible use. The machine produces an average of 60 units per day at a cost of $6.80 per unit, whereas other similar machines are producing twice that much The units sell for $9.30. Sales are equal to production on these units, and production runs for 260 days each year. The replacement machine would cost $81.100 and have a 2 year Me Given the information above, what are the consequences of Waterways replacing the machine that is slowing down production because of breakdowns? Replacing the machine will result in a net of should Waterways keep the old machine Click if you would like to show
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