Find out internal production

Assignment Help Operation Management
Reference no: EM132817557

A manager is trying to decide whether to purchase a certain part or to have it produced internally. Internal production could use either of two processes. One would entail a variable cost of $15 per unit and an annual fixed cost of $280,000; the other would entail a variable cost of $18 per unit and an annual fixed cost of $206,000. Three vendors are willing to provide the part. Vendor A has a price of $20 per unit for any annual quantity up to 25,000 units. Vendor B has a price of $23 per unit if demand is 1,000 units or less, but $19 per unit (for all units) if demand is greater. Vendor C offers a price of $22 per unit for the first 1,000 units, and $20 per unit for additional units.

At what quantity would alternatives Internal production 1 and Internal production 2 yield the same profit?

Reference no: EM132817557

Questions Cloud

Find four qualities of resources : Think about your favorite restaurant and the four qualities of resources that lead to success as articulated by resource-based theory.
What happens to the organizational climate : Resistance to change is a normal everyday aspect in the workplace. Note what happens to the organizational climate when this resistance occurs.
How long will it take until the loan is repaid : If the company chooses a constant payment loan and makes a repayment of 2% p.a., how long will it take until the loan is repaid
Prepare statement of cash flows : Prepare statement of cash flows. Allowed a P30,OOO cash withdrawal to the owner of the business. Paid P160,OOO cash on accounts payable.
Find out internal production : A manager is trying to decide whether to purchase a certain part or to have it produced internally. Internal production could use either of two processes.
What is the price of miller corporation stock today : However, in two years the expected dividend is $1.75, and it will remain at that level forever. What is the price of Miller Corporation's stock today
Create a list of tasks that need to be completed : Create a list of tasks that need to be completed for the new information system based on the information given in the case.
What the cost flow assumption used by kingman : Nichols then sold 600 units at a selling price of $10 each, resulting in a gross profit of P 2,700. The cost flow assumption used by Kingman
What would be recorded as a gain on transfer of receivables : An amount equal to 10% of the accounts receivable for possible adjustments. What would be recorded as a gain (loss) on the transfer of receivables?

Reviews

Write a Review

Operation Management Questions & Answers

  Describe their descope-lien list and cash reserve approaches

Describe their “de-scope,” “lien list,” and “cash reserve” approaches. How did a change in philosophy make such a drastic difference in project cost?

  Why is ethics in criminal justice research important

Write a paper in which you describe the ethical issues related to the research process within the field of criminal justice.

  Creative strategies that carnival cruise lines

Propose two (2) creative strategies that Carnival Cruise Lines could adopt in addition to current efforts in order to improve its image and regain its customer base.

  Think there are any vocations that should not unionize

In short, are you in favor of unions or are they a concept whose time has come and gone? Do you think there are any vocations that should not unionize?

  Mosque is handling more than half million pilgrims

The mosque is handling more than half a million pilgrims in a year which is really challenging task. How will you administering the Public [Pilgrims]?

  Prepare flowchart for the expenditure cycle narrative

Prepare a flowchart for the Expenditure Cycle narrative below. Make the flow chart with documents. When the warehouse department decides that it needs to order some more inventory it manually fills out a 2-part purchase requisition and updates the re..

  How you can possibly use this financial concept to shape

What you learned and one bullet point explaining how you can possibly use this financial concept to shape/launch your business.

  Fair way to measure and reward performance

Suppose you are an employee who exceeds every goal set for you, and you work on a team where most people seem not to try very hard and often fall short. Would a forced ranking system seem to you like a fair way to measure and reward performance? Why ..

  Business executives should display ethical principles

How do you think managers and business executives should display ethical principles.

  Update implementation and communication of strategic plan

Why is it important to continuously update the implementation and communication of a strategic plan? Who should be responsible for updating and communicating a strategic plan? Why?

  Explain the success of this firm

explain the success (or failure) of this firm, again in terms of the “3 C’s”, plus any other factors that you deem to be relevant.

  Kinzer evacuated his plane after in-flight emergency

Allegiant Captain Jason Kinzer evacuated his plane after an in-flight emergency and he was _____________.

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!

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