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Tech Engineering in Santa Fe is a producer of audio devices and thinks of outsourcing their product manufacturing from a foreign vendor. The company has

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Tech Engineering in Santa Fe is a producer of audio devices and thinks of outsourcing their product manufacturing from a foreign vendor. The company has collected the following data for making the economic decision Cost to make it in-house - 596 per unit. Annual Demand - 500,000 units The price quoted by the outsourcing company = $90 per unit plus a shipping cost of $20,000 per shipment. 1.1 Determine the minimum number of shipments per year the company is required from the outsourcing company for break-even? Show your steps for getting full credit. A) 120 B) 150 C) 90 D) None of the above The Tech Engineering is required to hire a local consultant for managing the order with the outsourcing company. The local consultant was hired at a local currency, FC. One FC = $0.3. The currency fluctuation (increase) in 2019 for each quarter was 6.2%, 6.9%, 4.2%, and 3.8%. This newly hired employee is hired on a salary of 75,000 FC per quarter. 1.2 How much is Tech Engineering required to pay in this consultant in 2019? Show your steps for getting full credit. A) $31,507.50 B) $62,345.50 C) $94,747.50 D) None of the above 1.3 Decision making in engineering economy is concerned with choosing the best A) alternative with the longest life. B) alternative with the smallest cost. C) alternative that is the most cost-effective. D) Alternative with the largest annual benefit. 1.4 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

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