Suppose that a manufacturer can produce a part for $8.00 with a fixed cost of $3,000. Alternately, the manufacturer could contract with a supplier in Asia to purchase the part at a cost of $9.00, which includes transportation. a. If the anticipated production volume is 1,500 units, compute the total cost of manufacturing and the total cost of outsourcing. b. What is the best decision? a. The total cost of manufacturing is $ (Simplify your answer.)

Suppose that a manufacturer can produce a part for $8.00 with a fixed cost of $3,000. Alternately, the manufacturer could contract with a supplier in Asia to purchase the part at a cost of $9.00, which includes transportation. a. If the anticipated production volume is 1,500 units, compute the total cost of manufacturing and the total cost of outsourcing. b. What is the best decision? a. The total cost of manufacturing is $ (Simplify your answer.)

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 5P: Hudson Corporation is considering three options for managing its data warehouse: continuing with its...

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Balance of Payments

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Please I will need the answer to a and b.

Suppose that a manufacturer can produce a part for $8.00 with a fixed cost of $3,000. Alternately, the manufacturer could contract with a supplier in Asia to
purchase the part at a cost of $9.00, which includes transportation.
a. If the anticipated production volume is 1,500 units, compute the total cost of manufacturing and the total cost of outsourcing.
b. What is the best decision?
a. The total cost of manufacturing is $
(Simplify your answer.)
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