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Question 4 5pts Suppose a U.S. manufacturer can produce parts for $10.00 per unit with a fixed cost of $1,000 at its plant. Altematively, the
Question 4 5pts Suppose a U.S. manufacturer can produce parts for $10.00 per unit with a fixed cost of $1,000 at its plant. Altematively, the U.S. manufacturer can outsource the parts to a supplier in Asia at $12.00 per unit cost. (Please review the break-even model in the 'Economic model 2_SUM24" slide in module 1). Identify the cost equation if the manufacturer chooses to produce the parts at its plant in the U.S.A. Assume O as preduction and C as costs. Question 5 5 pts Suppose a U.S. manufacturer can produce parts for $10.00 per unit with a fixed cost of $1,000 at its plant. Alternatively, the U.S. manufacturer can outsource the parts to & supplier in Asia at $12.00 per unit cost. (Please review e break-gven model in the 'Economic model 2_SUM24' slide in module 1) Assume O as production and C as cosis Identify the cost eguation if the manufacturer chooses to outsource the paris to Asia. Question 6 5pts Based on cost equations from domestic production and outsourcing, selve for the break-event output for the production of parts. Show your calculation step-by-step. [Break-event output is defined as the quantity of parts, the production of which would cost the same whether produced domestically or outsourced] Question 7 5 pts Based on domestic and outsourced cost equation. if the order quantity of the parts is equal to 1000 (Q=1000). what would be the most profitable way to supply the parts? Producing domestically or outsourcing? Show your calculation
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