Question:

Suppose that a manufacturer can produce a part for 9 00 with

Last updated: 6/27/2023

Suppose that a manufacturer can produce a part for 9 00 with

Suppose that a manufacturer can produce a part for 9 00 with a fixed cost of 5 000 Alternately the manufacturer could contract with a supplier in Asia to purchase the part at a cost of 12 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