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Compute the total cost of manufacturing

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Reference no: EM132970611

Suppose that a manufacturer can produce a part for ?$12.00 with a fixed cost of ?$4,000. ?Alternately, the manufacturer could contract with a supplier in Asia to purchase the part at a cost of ?$16.00?, which includes transportation.

a. If the anticipated production volume is 1,400 ?units, compute the total cost of manufacturing and the total cost of outsourcing.

b. What is the best? decision?

Reference no: EM132970611

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