Determine the break-even quantity for firm indifferent, Operation Management

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Determine the break-even quantity for firm indifferent

Problem:

A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is as follow:

For in-house manufacturing:

Annual fixed cost= $100,000

Varable cost per part= $140

For purchsing from supplier:

purchase price per part= $160

Required:

Question 1) Using this information, determine the break-even quantity for which the firm would be indifferent between manufacturing the part in-house or outsourcing it. Solve the problem and show all work.

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Operation Management: Determine the break-even quantity for firm indifferent

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Operation Management: Determine the break-even quantity for firm indifferent

Reference No:- TGS0886765

Have a Question? (oR Write a Review)

Recent Questions Asked Operation Management

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Ask an Expert for Answer!!

Operation Management: Determine the break-even quantity for firm indifferent

Reference No:- TGS0886765

Recent Questions Asked Operation Management

Q : Establish upper and lower control limits for control chart

Q : Construct c-chart for test errors and set the control limits

Q : What are three features of the cerebral cortex

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