6. How do supply from supply chains for manufacturing organizations? 7. How can companies satisfy increasing customer ex- pectations? 8. Describe the additional factors that affect global supply chains. Problems 1. Gabriela Manufacturing must decide whether to in- source or outsource a new toxic-free miracle carpet cleaner that works with its Miracle Carpet Cleaning Machine. If it decides to insource the product, the process would incur $300,000 of annual fixed costs and $1.50 per unit of variable costs. Ifitis outsourced, a supplier has offered to make it for an annual fixed cost of $120,000 and a variable cost of $2.25 per unit in variable costs. (a) Given these two alternatives, determine the indifference point (where total costs are equal). (b) Ifthe expected demand for the new miracle cleaner is 300,000 units, what would recommend that Gabriela Manufacturing do? you 2. Gabriela Manufacturing was able to find a new sup- Problems 1. Gabriela Manufacturing must decide whether to in- source or outsource a new toxic-free miracle carpet cleaner that works with its Miracle Carpet Cleaning Machine. If it decides to insource the product, the process would incur $300,000 of annual fixed costs and $1.50 per unit of variable costs. Ifit is outsourced, a supplier has offered to make it for an annual fixed cost of $120,000 and a variable cost of $2.25 per unit in variable costs. (a) Given these two alternatives, determine the indifference point (where total costs are equal). (b) If the expected demand for the new miracle cleaner is 300,000 units, what would you recommend that Gabriela Manufacturing do? able to find a new sup-

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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6. How do supply
from supply chains for manufacturing organizations?
7. How can companies satisfy increasing customer ex-
pectations?
8. Describe the additional factors that affect global supply
chains.
Problems
1. Gabriela Manufacturing must decide whether to in-
source or outsource a new toxic-free miracle carpet
cleaner that works with its Miracle Carpet Cleaning
Machine. If it decides to insource the product, the
process would incur $300,000 of annual fixed costs and
$1.50 per unit of variable costs. Ifitis outsourced, a supplier
has offered to make it for an annual fixed cost of $120,000
and a variable cost of $2.25 per unit in variable costs.
(a) Given these two alternatives, determine the
indifference point (where total costs are equal).
(b) Ifthe expected demand for the new miracle cleaner
is 300,000 units, what would recommend that
Gabriela Manufacturing do?
you
2. Gabriela Manufacturing was able to find a new sup-
Transcribed Image Text:6. How do supply from supply chains for manufacturing organizations? 7. How can companies satisfy increasing customer ex- pectations? 8. Describe the additional factors that affect global supply chains. Problems 1. Gabriela Manufacturing must decide whether to in- source or outsource a new toxic-free miracle carpet cleaner that works with its Miracle Carpet Cleaning Machine. If it decides to insource the product, the process would incur $300,000 of annual fixed costs and $1.50 per unit of variable costs. Ifitis outsourced, a supplier has offered to make it for an annual fixed cost of $120,000 and a variable cost of $2.25 per unit in variable costs. (a) Given these two alternatives, determine the indifference point (where total costs are equal). (b) Ifthe expected demand for the new miracle cleaner is 300,000 units, what would recommend that Gabriela Manufacturing do? you 2. Gabriela Manufacturing was able to find a new sup-
Problems
1. Gabriela Manufacturing must decide whether to in-
source or outsource a new toxic-free miracle carpet
cleaner that works with its Miracle Carpet Cleaning
Machine. If it decides to insource the product, the
process would incur $300,000 of annual fixed costs and
$1.50 per unit of variable costs. Ifit is outsourced, a supplier
has offered to make it for an annual fixed cost of $120,000
and a variable cost of $2.25 per unit in variable costs.
(a) Given these two alternatives, determine the
indifference point (where total costs are equal).
(b) If the expected demand for the new miracle cleaner
is 300,000 units, what would you recommend that
Gabriela Manufacturing do?
able to find a new sup-
Transcribed Image Text:Problems 1. Gabriela Manufacturing must decide whether to in- source or outsource a new toxic-free miracle carpet cleaner that works with its Miracle Carpet Cleaning Machine. If it decides to insource the product, the process would incur $300,000 of annual fixed costs and $1.50 per unit of variable costs. Ifit is outsourced, a supplier has offered to make it for an annual fixed cost of $120,000 and a variable cost of $2.25 per unit in variable costs. (a) Given these two alternatives, determine the indifference point (where total costs are equal). (b) If the expected demand for the new miracle cleaner is 300,000 units, what would you recommend that Gabriela Manufacturing do? able to find a new sup-
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