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mamaluj [8]
2 years ago
12

The company expects an annual need for 5,000 switches. If the company makes the product, it will have to utilize factory space c

urrently being leased to another company for $3,700 a month. If the company decides to make the parts, total costs will be:
Business
1 answer:
WITCHER [35]2 years ago
7 0

Based on the cost to produce each unit of the switches and the annual demand, the total costs will be $25,900 more than the cost of purchasing the switches.

<h3>What is the cost of producing the switches?</h3>

This can be found as:

= Variable cost + set up costs + supervisor's salary + opportunity cost of lost rent

= ( (6 + 5 + 4) x 5,000 units) + 45,500 + 41,000 + (3,700 x 12 months)

= $205,900

If they bought the switches at $36, they would cost:

= 36 x 5,000

= $180,000

Its cheaper to buy by:

= 205,900 - 180,000

= $25,900

Find out more on total costs computation at brainly.com/question/5168855.

#SPJ1

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Answer:

International business is the correct answer.

Explanation:

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Number 4 is correct. <u>Mass customization.</u>

Explanation:

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It can be defined as a process where companies produce goods and services for an expanded market, but that such products are modified and personalized to meet the needs and desires of a potential customer.

Mass customization allows the company to produce customized products with the advantage of productive flexibility and low unit costs that come from the mass manufacturing process.

This is a marketing strategy that is used to generate value for the consumer, since the company is able to offer a product with greater added benefits and at the same time maintain low manufacturing costs, which creates value and increases consumer satisfaction.

6 0
3 years ago
Read 2 more answers
A company with 110,000 authorized shares of $8 par common stock issued 49,000 shares at $13. Subsequently, the company declared
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$29,400

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8 0
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1. A parent provides consulting services to its wholly-owned subsidiary during the year. The parent charged the subsidiary $600,
Fed [463]

Answer:

C

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Which of the following is NOT an assumption that economists make when developing a production possibilities frontier (PPF)?
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Option D

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