a. How many breakers would the electrical switching equipment company need per year to make the in-house option the least costly? The company should consume rounded to the nearest whole number.) breakers per year to make the manufacturing the part in-house option the least costly. (Enter your response b. Assume the subcontractor wants the company to share in the costs of the equipment. The ESE company estimates that the total cost would be $8 million, which also includes management oversight for the new supply contract. For this concession, the subcontractor will drop the per unit price to $14.00. Under this assumption, how many breakers would the ESE company need per year to make the in-house option least costly? breakers per year to make the manufacturing the part in-house option the least costly. (Enter your response The company should consume rounded to the nearest whole number.) c. If the ESE manufacturer is expecting to use 1,200,000 breakers per year, which option (make in-house, use subcontractor without sharing in the cost of equipment, use subcontractor with sharing in the cost of equipment) is the least costly? The least costly option is ▼ with a total cost of
a. How many breakers would the electrical switching equipment company need per year to make the in-house option the least costly? The company should consume rounded to the nearest whole number.) breakers per year to make the manufacturing the part in-house option the least costly. (Enter your response b. Assume the subcontractor wants the company to share in the costs of the equipment. The ESE company estimates that the total cost would be $8 million, which also includes management oversight for the new supply contract. For this concession, the subcontractor will drop the per unit price to $14.00. Under this assumption, how many breakers would the ESE company need per year to make the in-house option least costly? breakers per year to make the manufacturing the part in-house option the least costly. (Enter your response The company should consume rounded to the nearest whole number.) c. If the ESE manufacturer is expecting to use 1,200,000 breakers per year, which option (make in-house, use subcontractor without sharing in the cost of equipment, use subcontractor with sharing in the cost of equipment) is the least costly? The least costly option is ▼ with a total cost of
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 global manufacturer of electrical switching equipment (ESE) is considering outsourcing the manufacturing of an electrical breaker used in the
manufacturing of switch boards. The company estimates that the annual fixed cost of manufacturing the part in-house, which includes equipment,
maintenance, and management, amounts to $13 million. The variable cost of labor and materials are $13.00 per breaker. The company has an offer from a
major subcontractor to produce the part for $23.00 per breaker.
a. How many breakers would the electrical switching equipment company need per year to make the in-house option the least costly?
The company should consume
rounded to the nearest whole number.)
breakers per year to make the manufacturing the part in-house option the least costly. (Enter your response
b. Assume the subcontractor wants the company to share in the costs of the equipment. The ESE company estimates that the total cost would be $8
million, which also includes management oversight for the new supply contract. For this concession, the subcontractor will drop the per unit price to $14.00.
Under this assumption, how many breakers would the ESE company need per year to make the in-house option least costly?
breakers per year to make the manufacturing the part in-house option the least costly. (Enter your response
The company should consume
rounded to the nearest whole number.)
c. If the ESE manufacturer is expecting to use 1,200,000 breakers per year, which option (make in-house, use subcontractor without sharing in the cost
of equipment, use subcontractor with sharing in the cost of equipment) is the least costly?
The least costly option is
(Enter your response rounded to the nearest whole number.)
"
with a total cost of
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