Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The keyboards could be produced in house using either Process A or Process B or purchased from a supplier. For what levels of demand should each process be chosen? A B с D E Fixed Cost Variable Cost per unit Process A $8,000 $10 Process B $20,000 $4 From 0-800 Supplier, From 800 to 2000 Process A, From 2000 to infinity Process B From 0-800 Process A, From 800-2000 Process B, From 20000 to infinity Supplier From 0-2000 Supplier, From 2000 to infinity Process B, and Never Process A Supplier $0 $20 From 0-2000 Process A, From 2000 to infinity Process B, and Never Supplier Always use Supplier, Never use Process A, Never use Process B
Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The keyboards could be produced in house using either Process A or Process B or purchased from a supplier. For what levels of demand should each process be chosen? A B с D E Fixed Cost Variable Cost per unit Process A $8,000 $10 Process B $20,000 $4 From 0-800 Supplier, From 800 to 2000 Process A, From 2000 to infinity Process B From 0-800 Process A, From 800-2000 Process B, From 20000 to infinity Supplier From 0-2000 Supplier, From 2000 to infinity Process B, and Never Process A Supplier $0 $20 From 0-2000 Process A, From 2000 to infinity Process B, and Never Supplier Always use Supplier, Never use Process A, Never use Process B
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Transcribed Image Text:Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The keyboards could be produced in
house using either Process A or Process B or purchased from a supplier. For what levels of demand should each process be chosen?
O
O
Fixed Cost
Variable Cost
per unit
Process A
$8,000
$10
Process B
$20,000
$4
A From 0-800 Supplier, From 800 to 2000 Process A, From 2000 to infinity Process B
Supplier
$0
$20
B From 0-800 Process A, From 800-2000 Process B, From 20000 to infinity Supplier
C From 0-2000 Supplier, From 2000 to infinity Process B, and Never Process A
D From 0-2000 Process A, From 2000 to infinity Process B, and Never Supplier
E Always use Supplier, Never use Process A, Never use Process B
ד ח
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