User Account

All Pages

Determine the indifference point

Assignment Help Business Management
Reference no: EM131506764

ABC Company must decide whether to insource or outsource a new toxic-free miracle carpet cleaner that works with its new equipment. If it decides to insource the product, the process would incur $600,000 of annual fixed costs and $3.0 per unit of variable costs. If it is outsourced, a supplier has offered to make it for an annual fixed cost of $240,000 and a variable cost of $4.50 per unit in variable costs.

A. Given these two alternatives, determine the indifference point (where total costs are equal).

B. If the expected demand for the new equipment is 600,000 units, what would you recommend that ABC Company do?

Please provide the math involved so that i can learn and understand better

Reference no: EM131506764

Questions Cloud

Characteristics of one of their unique product designs : Select a company and provide two characteristics of one of their unique product designs. Explain how this product design is related to their business strategy.
Create a common-sized income statement for the three years : Create a common-sized income statement for the three years. What conclusions can you draw from the different parts of the statement?
What was the real interest rate earned on an ounce of gold : In January of 1980, a troy ounce of gold sold for $850 (an all-time high). Over the past 28 years, suppose the CPI has grown at a compounded annual rate of 3.2%
What is risk-free rate of return that must exist in market : Assuming no arbitrage opportunities, what are the values of the unit claims, at time 0? What is the risk-free rate of return that must exist in this market?
Determine the indifference point : A. Given these two alternatives, determine the indifference point (where total costs are equal).
What is the profitability index using a discount rate : What is the profitability index using a 14% discount rate? What does this mean?
What is the total cost of a four-year college education : Suppose it costs $18,000 per year (in early 2014 dollars) for tuition, room, board, and living expenses to attend a public university.
Briefing a legal case involving cps : What are the steps to briefing a legal case involving cps and possibly a parental termination?
Identify a natural cycle other than the rock cycle : Why can't an ecosystem's energy pyramid be inverted (that is, upside down)? Identify a natural cycle other than the rock cycle.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd