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Please answer all parts because I am not able to post the questins separately because it all connects. Please and thank you. Please answer all
Please answer all parts because I am not able to post the questins separately because it all connects. Please and thank you. Please answer all parts.
KSE Inc. manufactures several products, one of which is a radio. They produce 50,000 radios per year. At this production level, the cost per radio is as follows: An outside supplier has offered to sell the radios to KSE Inc. for $24.00 per unit. If KSE Inc. accepts this offer, then they will not need to employ the supervisor, and they will save 40% of the fixed manufacturing overhead costs. Assume that if KSE buys the radios, it has no other use for the facilities it currently uses to make radios. This problem has two requirements (a,b). Please put your final answer for the first requirement into the first box provided for it below, and then use the second box provided to show your work for it. It is necessary to show your work is order to earn partial credit if your final answer is incorrect. The second requirement has only one box for you to enter your response. Requirement (a): Calculate the financial advantage/(disadvantage) of buying the 50,000 radios from the outside supplier instead of making them. Enter your final answer rounded to the nearest whole dollar (if needed). Requirement (b): Should KSE Inc. make the radios internally or buy them from the outside supplier? WhyStep by Step Solution
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