Please do not give solution in image format thanku Given the following data, determine the total annual cost of making with each of process A and B and of buying. Estimated demand is13,000 units a year.Variable cost per unitAnnual fixed costTransportation cost per unit$YesO NOProcess A48$39.000$$--15MakeProcess B5133, 000Buy50$ 4The operations manager has said that it would be possible to achieve a 15 percent reduction in the fixed cost of Process B and a 15percent reduction in B's variable cost per unit. Would that be enough to change your answer if the estimated annual cost to achievethose savings was $7,000?

Here, given that the yearly estimated demand is 13000 units, For each alternative, I will determine…

The operations manager has said that it would be possible to achieve a 15 percent reduction in the fixed cost of Process B and a 15 percent reduction in B's variable cost per unit. Would that be enough to change your answer if the estimated annual cost to achieve those savings was $7,000? Yes ONO

The operations manager has said that it would be possible to achieve a 15 percent reduction in the fixed cost of Process B and a 15 percent reduction in B's variable cost per unit. Would that be enough to change your answer if the estimated annual cost to achieve those savings was $7,000? Yes ONO

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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Question

Please do not give solution in image format thanku

Given the following data, determine the total annual cost of making with each of process A and B and of buying. Estimated demand is
13,000 units a year.
Variable cost per unit
Annual fixed cost
Transportation cost per unit
$
Yes
O NO
Process A
48
$39.000
$
$
--
15
Make
Process B
51
33, 000
Buy
50
$ 4
The operations manager has said that it would be possible to achieve a 15 percent reduction in the fixed cost of Process B and a 15
percent reduction in B's variable cost per unit. Would that be enough to change your answer if the estimated annual cost to achieve
those savings was $7,000?

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