All categories

3 years ago

Outsourcing (Make-or-Buy) Decision

Business

1 answer:

ivann1987 [24]3 years ago

7 0

Answer:

If the company makes the units, it will save $7,000 per period.

Explanation:

Giving the following information:

Make in-house:

Number of units= 16,000

Variable cost per unit= $22

<u>Avoidable fixed cost per unit= $3</u>

Buy:

Number of units= 16,000

Buying price= $27

Rent= $25,000

<u>First, we will determine the total cost of each option:</u>

Make:

Total cost= 16,000*(22 + 3)= $400,000

Buy:

Total cost= 16,000*27 - 25,000= $407,000

If the company makes the units, it will save $7,000 per period.

You might be interested in

After answering a summons and complaint,Mike received a set of written questions from the plaintiff's attorney.He was directed t

777dan777 [17]

Answer:

The correct answer is letter "D": interrogatories.

Explanation:

An interrogatory is a set of questions the defendant is requested to answer before the trial in which some facts that are about to be presented in front of the court are explained. Interrogatories are part of the discovery stage of legal cases in which both the plaintiff and the defendant share information about the key facts of the case filed.

7 0

3 years ago

It has been Shelly's dream to open a bakery, and while she has experience in making all types of baked goods, she always gets ra

jok3333 [9.3K]

Answer: Limited marketing

Explanation: Limited marketing strategy refers to the marketing strategy in which the organisation tries to target a specific set of customers from a target market rather than everyone.

These are opted by organisation that have unique features in the product they are offering or have specialization in a specific product among others.

In the given case, Shelly has expertise in making bakery products but her cupcakes gets special attention from the customers.

Thus, we can conclude that the decision of Shelly to open a cupcake shop is an example of limited marketing.

4 0

3 years ago

HELP TAKING TEST!! Suppose you are a treatment specialist and desire additional training and certification. What would the best

natulia [17]

The answer is crisis certification

3 0

3 years ago

What is the 2016 repayment limitation for a single taxpayer who has income at a 350% poverty level?

Mademuasel [1]

For taxpayers with household income below 400% of the FPL there is a table of repayment limitation.
For at least 300% but not less than 400% ( for example: 350% ) it is $1,250.
Answer: $1,250.

7 0

3 years ago

Cyclical unemployment is closely associated with Select one: a. long-term economic growth. b. short-run ups and downs of the eco

kiruha [24]

Answer:

b. short-run ups and downs of the economy.

Explanation:

Cyclical unemployment is a form of employment that occurs as a result of fluctuations in the economy.

When there's a downturn in the economy, unemployment increases and It falls when there's a boom.

I hope my answer helps you

7 0

3 years ago

Read 2 more answers