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Suppose a new company needed to assemble a batch of 7,845 products in the next month. Suppose also that the company could either rent a
Suppose a new company needed to assemble a batch of 7,845 products in the next month. Suppose also that the company could either rent a factory and assemble the product in the United States, or they could outsource assembly to a foreign company that owned its own factory. The US factory would cost $11,000 to rent. Workers in the US factory would be paid $27 per hour while workers in the foreign company would be paid $12 per hr. It is assumed that workers can assemble 6 products per hour, regardless of where they are located. Products being shipped in from the foreign company would be subject to shipping and tax charges amounting to $4 per assembled unit. If the job can be completed in a month or less (meaning all costs and benefits are assumed to be current), how much cheaper would it be to use the foreign company rather than assemble the products in the US (enter a negative value if using the foreign company is actually more expensive than assembling the products in the US). Don't enter a $ symbol - just the number rounded to the nearest dollar
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