A company has two alternatives for meeting a customer requirement for 830,000 units of a part used in office printers. If done in-house, fixed cost would be $1,400,000 with variable cost at $2.40 per unit. Alternative two is to outsource for a total cost of $3.20 per unit. Determine the break-even point. Round your answer to the nearest whole number. units Determine if they should make the item in-house or outsource it. Round your answers to the nearest dollar. Total cost if done in-house: $ Total cost if outsourced: $ So, the company should -Select- -Select- do the work in-house outsource the work and save $
A company has two alternatives for meeting a customer requirement for 830,000 units of a part used in office printers. If done in-house, fixed cost would be $1,400,000 with variable cost at $2.40 per unit. Alternative two is to outsource for a total cost of $3.20 per unit. Determine the break-even point. Round your answer to the nearest whole number. units Determine if they should make the item in-house or outsource it. Round your answers to the nearest dollar. Total cost if done in-house: $ Total cost if outsourced: $ So, the company should -Select- -Select- do the work in-house outsource the work and save $
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:A company has two alternatives for meeting a customer requirement for 830,000 units of a part used in office printers. done in-house, fixed cost would be $1,400,000 with variable cost at $2.40 per unit. Alternative two is to
outsource for a total cost of $3.20 per unit. Determine the break-even point. Round your answer to the nearest whole number.
units
Determine if they should make the item in-house or outsource it. Round your answers to the nearest dollar.
Total cost done in-house: $
Total cost if outsourced: $
So, the company should -Select-
Select
do the work in-house
outsource the work
and save $
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