Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please give detailed steps Roedel Electronics produces tablet computer accessories, including integrated keyboard tablet stands that connect a keyboard to a tablet device and hold
please give detailed steps
Roedel Electronics produces tablet computer accessories, including integrated keyboard tablet stands that connect a keyboard to a tablet device and hold the device at a preferred angle for easy viewing and typing. Roedel produces two different sizes of integrated keyboard tablet stands, small and large. Each size uses the same keyboard attachment, but the stand consists of two different pieces, a top flop and a vertical stand that differ by size. Thus, a completed integrated keyboard tablet stand consists of three subassemblies that are manufactured by Roedel: a keyboard, a top flap and a vertical stand. Roede's sales forecast indicates that 7,000 small integrated keyboard tablet stands and 5,000 large integrated keyboard tablet stands will be needed to satisfy demand during the upcoming Christmas season. Because only 500 hours of in-house manufacturing time are available, Roedel is considering purchasing some, or all of the subassemblies from outside suppliers. If Roedel manufactures a subassembly in-house, it incurs a fixed setup cost as well as a variable manufacturing cost. The following table shows the setup cost, the manufacturing time per subassembly, the manufacturing cost per subassembly, and the cost to purchase each of the subassemblies from an outside supplier 0.40 0.65 2.2 Manufacturing Subassembly Setup Cost () Time per Unit (min.) Cost per Unit ($) Purchase Cost per Unit (s) Keyboard 1,000 1.9 Small top flap 1,200 2.90 3.25 Large top flap 1,900 3.0 3.15 3.70 Small vertical stand 1,500 0.8 0.30 0.55 Large vertical stand 1,500 1.0 0.55 0.95 If required, round your answers to nearest whole number (a) Determine how many units of each subassembly Roedel should manufacture and how many units of each subassembly Roedel should purchase. If an amount is zero, enter *o*. Round your answers to the nearest whole number, if necessary. Quantity Subassembly Production Purchase Keyboard Small Top Flap Large Top Flap Small Vertical Stand Large Vertical Stand What is the total manufacturing and purchase cost associated with your recommendation? (b) Suppose Roedel is considering purchasing new machinery to produce large top flaps. For the new machinery, the setup cost is $3,000, the manufacturing time is 2.5 minutes per unit, and the manufacturing cost is $2.60 per unit. Assuming that the new machinery is purchased, determine how many units of each subassembly Roedel should manufacture and how many units of each subassembly Roedel should purchase. If an amount is zero, enter *o" Quantity Subassembly Production Purchase Keyboard Small Top Flap Large Top Flop Small Vertical Stand Large Vertical Stand What is the total manufacturing and purchase cost associated with your recommendation? What is the total manufacturing and purchase cost associated with your recommendation? Do you think the new machinery should be purchased? Explain. (i) The new machinery is too expensive for Roedel to purchase. (ii) Assuming the new machinery can be used in future seasons, it would be beneficial for Roedel to purchase the new equipment - Select your 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