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 V breakers per year to make the manufacturing the part in-house option the least costly. (Enter your response rounded 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
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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 $10 million. The variable cost of labor and materials
are $15.00 per breaker. The company has an offer from a major subcontractor to produce the part for $22.00 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
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breakers per year to make the manufacturing the part in-house option the least costly. (Enter your response rounded to the nearest whole number.)
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Check answer
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 $10 million. The variable cost of labor and materials are $15.00 per breaker. The company has an offer from a major subcontractor to produce the part for $22.00 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 View an example Get more help - breakers per year to make the manufacturing the part in-house option the least costly. (Enter your response rounded to the nearest whole number.) Clear all Check answer
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