Compute the cost of in-house manufacturing

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Question: Use the Outsourcing Decision Model Excel file to compute the cost of in-house manufacturing and outsourcing for the following levels of demand: 800, 1000, 1200, and 1400. Use this information to set up a payoff table for the decision problem, and apply the aggressive, conservative, and opportunity loss strategies. Outsourcing Decision Model Data Manufactured in-house Fixed cost $50,000 Unit variable cost $125 Purchased from supplier Unit cost $175 Production volume 1500 Model Total manufacturing cost $237,500 Total purchased cost $262,500 Cost difference (Manufacture - Purchase) -$25,000 Best Decision Manufacture

Reference no: EM131905166

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