What are the fixed costs for the make decision

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Reference no: EM132531612 , Length: word count:1500

Question 1:

Answer the question that foam, based on the & cram provided below

2297_figure.jpg

i. What are the fixed costs for the make decision?
ii. What are the fixed costs for the buy decision?
iii. What is the breakeven cost for the two options illustrated?
iv. What is the breakeven quantity for the two options illustrated?
v. At Q = 2400, would you choose the make or buy option? Why choose the option?
At Q = 900 would you choose the make Or but option? Why choose the option?

Question 2:

The KL ATV Corporation's master production schedule (MPS) for January and February is shown in Table 1 and the bill of materials (BOM) for their all-terrain vehicles (ATV) is shown in Figure 1. Based on the given lot sizes (Q), lead times (LT) and safety stocks (SS), provide the material requirements planning (MRP) computation of the Model B ATV. Write your answer in the tables attached below.

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Reference no: EM132531612

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