Answer all sub part questions, please. Samsung operations manager must determine whether to make or buy a new "heartrate sensor" for its newGalaxy smart watch it's about to produce. One million units are expected to be produced over the life cycle.If the product is made, a start-up cost of $420,000 & a manufacturing cost of $2/sensor. There's a probabilityof 4 that the product will be satisfactory and a .6 probability that it will not. If the product is not satisfactory,the firm will have to reevaluate the decision. If the decision is reevaluated, the choice will be whether tospend another $500,000 to redesign the sensor or to purchase. Likelihood of success the second time that themake decision is made is .9. If the second make decision also fails, the firm must purchase.Regardless of when the purchase takes place, Samsung's best judgment of cost is that it will pay $.50 foreach purchased sensor plus $720,000 in vendor development cost.Total Cost incurred if the company "fails after re-evaluaring the making process" *O $2,140,000O $4,140,000$2,104,000O $1,140,000 "Total Manufacturing Cost" is *$2,000,000$3,280,875O $1,808,775O $2,787,875Total Cost incurred if the company "succeeds afterre-evaluating the making process" *$2,920,000$7,593,755$675,375.5O $2,902,000

The total manufacturing costs include all the expenses incurred by a company for the production of…

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Business

Accounting

Total Cost incurred if the company "fails after re- evaluating the making process"

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 2PB: Mortech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and...

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