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Ultimate Travel Company fabricates automobiles. Each auto includes one wiring harness, which is currently made in-house Details of the harness fabrication are as follows: 900
Ultimate Travel Company fabricates automobiles. Each auto includes one wiring harness, which is currently made in-house Details of the harness fabrication are as follows: 900 units per month Volume Variable cost per unit Fixed costs $7 per unit $13,000 per month A factory in India has offered to supply Ultimate Travel with ready-made units for a cost of $10 each Assume that Ultimate Travel's fixed costs are unavoidable, but the company could use the vacated production facilities to earn an additional $5,000 of profit per month. In order to maximize operating income, Ultimate Travel should outsource. - True O False Harmony Company sells hand-knit scarves. Each scarf sells for $40. The company pays $90 to rent vending space for one day. The variable costs are $11 per scarf. How many scarves should the company sell each day in order to break even? (Round your answer up to the nearest whole scarf.) O A. 50 scarves OB. 4 scarves O C. 3 scarves OD. 9 scarves
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