Question
Roedel Electronics produces tablet computer accessories, including integrated keyboard tablet connect a keyboard to a tablet device and hold the device at a preferred
Roedel Electronics produces tablet computer accessories, including integrated keyboard tablet connect a keyboard to a tablet device and hold the device at a preferred angle for easy viewing Roedel produces two different sizes of integrated keyboard tablet stands, small and large. Each same keyboard attachment, but the stand consists of two different pieces, a top flap and a ver differ by size. Thus, a completed integrated keyboard tablet stand consists of three subassemb manufactured by Roedel: a keyboard, a top flap and a vertical stand. Roedel's sales forecast indicates that 7,000 small integrated keyboard tablet stands and 5,000 keyboard tablet stands will be needed to satisfy demand during the upcoming Christmas seaso 500 hours of in-house manufacturing time are available, Roedel is considering purchasing som subassemblies from outside suppliers. If Roedel manufactures a subassembly in-house, it incur cost as well as a variable manufacturing cost. The following table shows the setup cost, the ma per subassembly, the manufacturing cost per subassembly, and the cost to purchase each of th from an outside supplier: Manufacturing Subassembly Setup Cost ($) Time per Unit (min.) Cost per Unit ($) Purchase Keyboard 1,000 2.1 0.40 Small top flap 1,200 2.2 2.90 Large top flap 1,900. 3.0 3.15 Small vertical stand 1,500 0.8 0.30 Large vertical stand 1,500 1.0 0.55 If required, round your answers to nearest whole number. (a) Determine how many units of each subassembly Roedel should manufacture and how mar subassembly Roedel should purchase. If an amount is zero, enter "0". Round your answer whole number, if necessary. Subassembly Keyboard Quantity Production Purchase 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 t the setup cost is $3,000; the manufacturing time is 2.5 minutes per unit, and the manufa $2.60 per unit. Assuming that the new machinery is purchased, determine how many unit subassembly Roedel should manufacture and how many units of cach subassembly Roede If an amount is zero, enter "0" Subassembly Keyboard Small Top Flap Quantity Production Purchase Large Top Flap Small Vertical Stand Large Vertical Stand 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 purchase the new equipment.
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