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SUBMIT YOUR WORK FOR THIS QUESTION - Name the question LIGHTING. DO NOT LEAVE CONNECT BLANK - at least input the quantitative results. currently considering
SUBMIT YOUR WORK FOR THIS QUESTION - Name the question LIGHTING. DO NOT LEAVE CONNECT BLANK - at least input the quantitative results. currently considering outsourcing the part to a overseas manufacturer. The company normal sells 8,000 units per year with the following costs of producing and selling a single unit of XN103 part: overhead) will continue even if the part were purchased from an outside supplier. Required: 1. Determine the relevant cost per unit, and in total to continue making the XN103 part inhouse. 3 marks 2. Determine the relevant cost per unit, and in total to outsource the XN103 part. If the offer is accepted, how will annual profits be increased or decreased? 3 marks 3. Provide a qualitative analysis of ABC's decision to outsource the production of it's XN103 part. (a minimum of 2 pros and 2 cons) 4 marks 4. Based on both your quantitative and qualitative analysis, what do you recommend for ABC and why or why not? (not a one word answer, imagine you are speaking to the owner) 2 marks why or why not? 3 marks
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