Would outsourcing make sense for a manufacturing

Reference no: EM13361539

Would outsourcing make sense for a manufacturing operation

For the data below, determine whether outsourcing of the particular manufacturing operation makes financial sense:

1. the current variable cost per unit $10.00
2. the current fixed costs in total 100,000
3. the current fixed costs attributed to this product line $60,000
4. the quote from an outside vendor to perform the operation $13.00
5. the anticipated volume of widgets needed is 10,000

Reference no: EM13361539

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