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FinnZ [79.3K]
3 years ago
11

You run a manufacturing facility that makes roller skates. Fixed monthly cost is $50,000 in mortgage, $3,000 per employee on ave

rage in salaries (you have 40 employees) and $20,000 in other expenses. The cost of raw materials is $2 per skate, and other costs per skate average to about $1. You sell the skates for $19.95 each.
You have the option of outsourcing the manufacturing, which will cost you $10 per skate, with a lower fixed cost of $90,000. At what point will you be indifferent between manufacturing yourself versus outsourcing it?

Business
1 answer:
Marysya12 [62]3 years ago
3 0

Answer:

At producing 14,286 skates

Explanation:

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7 0
2 years ago
The investment timing decision relates to: Group of answer choices how frequently the cash flows of a project occur. how long th
AveGali [126]

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<h3>Is an investment's timing crucial?</h3>

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The choice and acquisition of the long-term and short-term assets in which funds will be invested by the organization are referred to as investment decisions.

<h3>What is a timing option for investments?</h3>

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<h3>What is an example of an investment decision?</h3>
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5 0
2 years ago
Why is it so important for all entrepreneurs to be prepared for changing technology
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7 0
1 year ago
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