A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is provided below: For in-house manufacturing: Annual fixed cost = $85,000 Variable cost per part = $110 For purchasing from supplier: Purchase price per part = $120 For this information, use the Break-Even Excel template to find the best decision if the demand is 5,500. Round your answers to the nearest dollar. Total cost of production: $ Total cost of outsourcing: $ The best decision is to . Determine the break-even quantity for which the firm would be indifferent between manufacturing the part in-house or outsourcing it. Use the Excel Goal Seek tool. Round your answer to the nearest whole number.
A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is provided below: For in-house manufacturing: Annual fixed cost = $85,000 Variable cost per part = $110 For purchasing from supplier: Purchase price per part = $120 For this information, use the Break-Even Excel template to find the best decision if the demand is 5,500. Round your answers to the nearest dollar. Total cost of production: $ Total cost of outsourcing: $ The best decision is to . Determine the break-even quantity for which the firm would be indifferent between manufacturing the part in-house or outsourcing it. Use the Excel Goal Seek tool. Round your answer to the nearest whole number.
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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A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is provided below: For in-house manufacturing: Annual fixed cost = $85,000 Variable cost per part = $110 For purchasing from supplier: Purchase price per part = $120 For this information, use the Break-Even Excel template to find the best decision if the demand is 5,500. Round your answers to the nearest dollar. Total cost of production: $ Total cost of outsourcing: $ The best decision is to . Determine the break-even quantity for which the firm would be indifferent between manufacturing the part in-house or outsourcing it. Use the Excel Goal Seek tool. Round your answer to the nearest whole number.
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