A large global automobile manufacturer is considering outsourcing the manufacturing of a solenoid used in the transmission of its SUVs. The company estimates that annual fixed costs ofmanufacturing the part in-house, which include equipment, maintenance, and management, amounts to $6.7 million. The variable costs of labor and material are $7.75 per unit. The company has anoffer from a major subcontractor to produce the part for $9.75 per unit. However, the subcontractor wants the company to share in the costs of the equipment. The automobile company estimatesthat the total cost would be $2.7 million, which also includes management oversight for the new supply contact.a. How many solenoids would the automobile company need per year to make the in-house option least costly?The company must consumeView an exampleGet more help.Qsolenoids to make the manufacturing the part in-house option least costly. (Enter your response rounded to the nearest whole number.)&+(<)0Clear allCheck answer+delete

1 million = 1000000 For in house manufacturing Fixed cost = $6.7 million or 6,700,000 Variable…

Answered: A large global automobile manufacturer…

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter6: Target Markets: Segmentation And Evaluation

Section: Chapter Questions

Problem 4SC

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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 $8 million. The variable cost of labor and materials are $11.00 per breaker. The company has an offer from a major subcontractor to produce the part for $16.00 per breaker.a. How many breakers would the electrical switching equipment company need per year to make the in-house option the least costly?b. Assume the subcontractor wants the company to share in the costs of the equipment. The ESE company estimates that the total annual cost would be $5 million, which also includes management oversight for the new supply contract. For this concession, the subcontractor will dropthe per-unit price to $12.00. Under this assumption, how many breakers would the ESE company…
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Currently, none of the company’s competitors has a production facility in Latin America. To reach this untapped market, the chief executive officer (CEO) is considering opening an additional manufacturing facility in Latin America. The operations management team has been directed to analyze the factors (including global) that need to be considered when deciding where to locate a new facility and report the recommended factors for consideration to the CEO. The team will also need to analyze how a life cycle assessment will help the company reduce its ecological impact, including making a case to the CEO that the benefits are worth funding the effort. How will a furniture company Increase its customer base in the untapped Latin American market? Reducing the company’s ecological footprint? Reducing production cost and Enabling multicultural collaboration opportunities between the operation’s functional teams (marketing and sales, finance, and operations) in the U.S. and Latin America…

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