What is the break-even quantity in this make-or-buy decision

Assignment Help Operation Management
Reference no: EM13898961

A U.S. company is currently producing a product in house with a yearly fixed cost of $4 million and a variable cost of $5 per unit. A Chinese subcontractor can produce the product with equal quality for a yearly fixed cost of $5 million and a variable cost of $3 per unit. What is the break-even quantity in this make-or-buy decision?

Reference no: EM13898961

Questions Cloud

Creates pressure-treated utility poles from pine logs : Link’s Lumber creates pressure-treated utility poles from pine logs bought from several surrounding pine plantations. At the Link's Lumber operation, a batch of 100 pine logs yields 85 utility poles with 5 labor- hours required to process the entire ..
What makes your organization different from its competition : A written positioning statement that identifies: Your organization's product/service. Your target market. How your product solves the target market's needs and What makes your organization different from its competition
The total cost of hiring and layoff : A company has the following forecast demand for the next 6 months: Suppose inventory, stock outs, overtime and subcontract in aren't allowed. Only hiring and layoffs are allowed to respond to fluctuations. There are currently 20 workers on payroll. T..
Describe parental care variation among species and sexes : Describe parental care variation among species and between the sexes
What is the break-even quantity in this make-or-buy decision : A U.S. company is currently producing a product in house with a yearly fixed cost of $4 million and a variable cost of $5 per unit. A Chinese subcontractor can produce the product with equal quality for a yearly fixed cost of $5 million and a variabl..
How key requirements for customer support services : Which Baldrige criteria requires the applicant to document how key requirements for customer support services are defined and how these support processes are designed to achieve the overall objectives of the firm.
Use of youtube video to promote its products : Assume you are a consultant to TopSpin, a tennis equipment manufacturerer that sells it products directly to customers on the Web. TopSpin is considering the use of YouTube video to promote its products. Other marketing staff have suggested including..
Legal system and legal structure of the gulf region : Discuss the importance of law and the requirements to amend them reqularly.Cite examples from perspective of Oman and explain with evidence the importance, advantages of the commercial agreements between Sultanate of Oman and foreign countries.
What does a merciful justice mean : What does a merciful justice mean? Does suffering have a meaning? What is its relationship with repentance? What type of cosmological and theological effects can this repentance have?

Reviews

Write a Review

 

Operation Management Questions & Answers

  Owner of a software technology firm located in lafayette

You are the owner of a software technology firm located in Lafayette, LA. You have launched a new social media portal that will allow adopted individuals to trace their roots

  A new branch will give more innovative technologies to

taking on the role of a ceo develop a powerpoint presentation of approximately 15 slides that explains how you would

  Organization has decided to evaluate how two different

n organization has decided to evaluate how two different computer programs are being accepted by the market and how they are used for businesses

  Identify four to six common communication problems

Identify four to six common communication problems that occur in organizations. The text discusses several organizational communication problems. Provide examples of where you could see problems in a healthcare organization.

  Compute alternative break-even point in units

A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated.

  Eliminate dysfunctional conflict

How can a manager know when conflict is functional? How can conflict be managed to ensure that it remains functional? Do managers have a responsibility to ensure that conflict is functional or to eliminate dysfunctional conflict?

  What is the economic production quantity

d) What percentage of time will the facility be producing components? e) what is the annual cost per year, including cost of the lights?

  Campaign project and the expected project completion time

Determine the critical path for the campaign project and the expected project completion time. (Use the expected time for the activity completion time) Determine the probability that the project will be completed in less than 34 days. Determine the p..

  How that will be useful for the ongoing project

The project is prepared to move into remote offices across the organization. In your paper address the 4 key stages of project monitoring and how that will be useful for the ongoing project.

  Cultural dimension of individualism and collectivism

Explain Hofstede's cultural dimension of "Individualism and collectivism" and illustrate how it might affect a project manager's behavior.

  Calculate schedule variance and schedule performance index

A project to build a new bridge seems to be going very well since the project is well ahead of schedule and costs seem to be running very low. A major milestone has been reached where the first two activities have been totally completed.

  Concepts and operations management principles

Integrate the concepts and operations management principles that you've been studying in this module and turn in your one to two page paper addressing the following questions:

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