Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ross Manufacturing in Atlanta is considering outsourcing a component from an offshore company. The company has collected the following data to make an economic decision.

Ross Manufacturing in Atlanta is considering outsourcing a component from an offshore company. The company has collected the following data to make an economic decision.
Cost to make it in-house =$96 per unit.
Annual Demand =500,000 units
Price quoted by the Asian company =$90 per unit plus a shipping cost of $20,000 per shipment.
1.2A. Determine the number of shipments per year that the company can require the supplier to make in order to justify outsourcing.
1.2B. In addition to cost consideration, what other factors would weigh in decision making?
1.3. In decision making related to engineering projects, based on economics, the most important non-economic factor is:
A) Operating cost
B) Benefits
C) Morale
D) Taxes
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Management

Authors: Robbins, DeCenzo, Coulter

7th Edition

132996855, 0-13-610982-9 , 9780132996853, 978-0-13-61098, 978-0136109822

More Books

Students also viewed these General Management questions