Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the information below to answer the following question ( s ) . Consider the following spreadsheet for an outsourcing decision model. table [

image text in transcribed
Use the information below to answer the following question(s).
Consider the following spreadsheet for an outsourcing decision model.
\table[[,A,B],[1,Outsourcing Decision Model,],[2,,],[3,Data,],[4,,],[5,Manufactured in-house,],[6,Fixed cost,560,000],[7,Unit variable cost,],[8,,],[9,Purchased from supplier,],[10,Unit cost,],[11,,],[12,Demand volume,],[13,,],[14,Model,],[15,,],[16,Total manufacturing cost,],[17,Total purchased cost,],[18,Difference,],[19,Decision,]]
We assume that the production (demand) volume is normally distributed with a mean of 1,000 and a standard deviation of 100. For the unit cost, select the triangular distribution. It has a minimum value of $150, most likely value of $165, and a maximum value of $190. The number of trials per simulation is equal to 5,000 at a Sim. Random Seed of 1. Run the simulation and answer the following question(s) using the Analytic Solver Platform.
[Hint: choose the closest value.]
Determine the value of standard deviation found from the simulation results
Select one:
a. $9,175
b. $7,884
c. $3,860
d. $12,870
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

Horngrens Accounting

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood

10th Canadian edition Volume 2

978-0134213118, 134213114, 133855384, Google Book, 978-0133855388

More Books

Students also viewed these Accounting questions

Question

What are the requirements of a measurable objective?

Answered: 1 week ago

Question

What is the importance of the external environment? LO.1

Answered: 1 week ago