Roedel Electronics produces a variety of electrical components, including a remote control for televisions and a remote control for DVD players. Each remote control consists of three subassemblies that are manufactured by Roedel: a base, a cartridge, and a keypad. Both remote controls use the same base subassembly, but different cartridge and keypad subassemblies.

Roedel's sales forecast indicates that 7000 TV remote controls and 5000 DVD remote controls 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:

Subassembly	Setup Cost($)	Manufacturing Time per Unit(min.)	Manufacturing Cost per Unit($)	Purchase Cost per Unit($)
Base	1000	0.9	0.40	0.65
TV cartridge	1200	2.2	2.90	3.45
DVD cartridge	1900	3.0	3.15	3.70
TV keypad	1500	0.8	0.30	0.50
DVD keypad	1500	1.0	0.55	0.70

a. Determine how many units of each subassembly Roedel should manufacture and how many units Roedel should purchase. ANSWERS IN VALUE BOXES.

Variable names	Value
No. of bases manufactured	___________
No. of bases purchased	___________
No. of TV cartridges made	____________
No. of TV cartridges purchased	__________
No. of DVD cartridge made	__________
No. of DVD cartridge purchased	__________
No. of TV keypads made	__________
No. of TV keypads purchased	__________
No. of DVD keypads made	__________
No. of DVD keypads purchased	_________

What is the total manufacturing and purchase cost associated with your recommendation? $ ______________

b. Suppose Roedel is considering purchasing new machinery to produce DVD cartridges. For the new machinery, the setup cost is $3000; the manufacturing time is 2.5 minutes per cartridge, and the manufacturing cost is $2.60 per cartridge. 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.

Variable names	Value
No. of bases manufactured	_____________
No. of bases purchased	__________
No. of TV cartridges made	____________
No. of TV cartridges purchased	___________
No. of DVD cartridge made	____________
No. of DVD cartridge purchased	__________
No. of TV keypads made	___________
No. of TV keypads purchased	__________
No. of DVD keypads made	___________
No. of DVD keypads purchased	___________

What is the total manufacturing and purchase cost associated with your recommendation? $ ______________