Should the company outsource and why

Assignment Help Finance Basics
Reference no: EM13505273

Mark Berenson is CEO of Montclair Electronics. He is currently producing 80,000 video telephones a year in his New Jersey plant, where fixed cost are $900,000 and the variable cost per unit is $5. By outsourcing to a Mexican firm, annual fixed cost payments will rise to $1 million.

a) When the variable cost of outsourcing is $4 per unit, what is the break-even quantity in this case? Please provide the formula, at least one step of calculation, and the correct answer for full credit.

b) Should the company outsource and why?

Reference no: EM13505273

Which supplier should mr. price choose please provide

Which supplier should Mr. Price choose? Please provide the overall ratings of each supplier for full credit. For each overall rating, please provide at least one step of calcu

How can a supplier with a lower unit price end up costing

How can a supplier with a lower unit price end up costing the buyer more than a supplier with a higher unit price? Please list at least 6 possible reasons for this situation.

Dividends are expected to grow at a constant rate

The common stock of Kyocera currently sells for $88.50 and its current (D0) dividend is $1.10. Determine the implied growth rate for Kyocera assuming that an investor's r

Make purchasing a computer system

What is the minimum lease payment that would make purchasing a computer system and writing a 6-year lease contract on it? The price of the computer system is $175,000,

Find the average collection period for a year

Find the average collection period for a year that is not on the balance sheet? I have the credit sales total, and days Ina period, but I am having troubles figuring out th

What is the approximate real rate of interest

Calculating Real Rates of Return [ LO4] If Treasury bills are currently paying 6 percent and the inflation rate is 2.6 percent, what is the approximate real rate of intere

Discrepancy between maximizing profits and maximizing value

Actions that maximize profit may not maximize shareholder wealth. What role can the time value of money play in explaining the discrepancy between maximizing profits and m

Explain the primary roles of the u.s. federal reserve

Explain the primary roles of the U.S. Federal Reserve, the Federal Reserve Chairman, and the Federal Reserve Board. Indicate each party's effectiveness in today's economic e

Reviews

Write a Review

 
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