The Vera Molding company has two alternatives for meeting a customer requirement for 7,500 units of a specialty molding. If done in-house, fixed cost would be $200,000 with variable cost at $32 per unit. Alternative two is to outsource for a total cost of $78 per unit. What is the break-even quantity? Round your answer to the nearest whole number. _________ units Should the firm make-in-house or outsource? Round your answers to the nearest dollar. Total cost if done in-house: $ ________________ Total cost if outsourced: $ ________________ So, the firm can save $ ____________ by producing in- house.
The Vera Molding company has two alternatives for meeting a customer requirement for 7,500 units of a specialty molding. If done in-house, fixed cost would be $200,000 with variable cost at $32 per unit. Alternative two is to outsource for a total cost of $78 per unit.
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What is the break-even quantity? Round your answer to the nearest whole number.
_________ units
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Should the firm make-in-house or outsource? Round your answers to the nearest dollar.
Total cost if done in-house: $ ________________
Total cost if outsourced: $ ________________
So, the firm can save $ ____________ by producing in- house.
A company has two alternatives for meeting a customer requirement for 8,000 units of a specialty molding. If done in-house, fixed cost would be $345,000 with variable cost at $35 per unit. Alternative two is to outsource for a total cost of $80 per unit. Determine the break-even point. Round your answer to the nearest whole number.
______________ units
Determine if they should make the item in-house or outsource it. Round your answers for total costs and savings to the nearest dollar.
Total cost if done in-house: $ _____________
Total cost if outsourced: $ _______________
So, the company should do the work in house and save $_______.
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