Reference no: EM131342238
A global manufacturer of electrical switching equipment? (ESE) is considering outsourcing the manufacturing of an electrical breaker used in the manufacturing of switch boards. The company estimates that the annual fixed cost of manufacturing the part? in-house, which includes? equipment, maintenance, and? management, amounts to?$10 million. The variable cost of labor and materials are ?$13.00 per breaker. The company has an offer from a major subcontractor to produce the part for $ 21.00 per breaker.
a. How many breakers would the electrical switching equipment company need per year to make the? in-house option the least? costly?
The company should consume more than 1,250,000 breakers per year to make the manufacturing the part? in-house option the least costly. ?(Enter your response rounded to the nearest whole? number.)
b. Assume the subcontractor wants the company to share in the costs of the equipment. The ESE company estimates that the total cost would be $6 ?million, which also includes management oversight for the new supply contract. For this? concession, the subcontractor will drop the per unit price to $15.00 Under this? assumption, how many breakers would the ESE company need per year to make the? in-house option least? costly?
The company should consume more than less than ____ breakers per year to make the manufacturing the part? in-house option the least costly. ?(Enter your response rounded to the nearest whole? number.)
Part A of the answer is solved and is correct Please solve for B.
|
How does basic research differ from applied research
: Describe the characteristics of scientific inquiry, according to Goodstein (2000).
|
|
Calculate the NPV of this investment opportunity
: FastTrack Bikes, Inc. is thinking of developing a new composite road bike. Development will take six years and the cost is $191,000 per year. Once in production, the bike is expected to make $286,500 per year for 10 years. Calculate the NPV of this i..
|
|
How can criminality be seen as a form of adaptive behavior
: How can criminality be seen as a form of adaptive behavior - Do you [support] or [oppose] the following criminological belief? State and explain your position. Be sure to cite accordingly.
|
|
Prone to many conditions that affect our bones
: As we get older we are prone to many conditions that affect our bones, muscles and nerves. In your opinion how can these conditions be prevented?
|
|
Global manufacturer of electrical switching equipment
: A global manufacturer of electrical switching equipment? (ESE) is considering outsourcing the manufacturing of an electrical breaker used in the manufacturing of switch boards. How many breakers would the electrical switching equipment company need p..
|
|
Evaluate the effectiveness of leadership within corporation
: Analyze the five forces of competition to determine how they impact the company. Evaluate the effectiveness of leadership within this corporation and make at least one recommendation for improvement.
|
|
Oak ridge national laboratory excellent cloning fact sheet
: Learn about cloning, starting with the Oak Ridge National Laboratory's excellent Cloning Fact Sheet.
|
|
Discuss the use of uniform crime reporting
: How are the criminal data at the selected department collected or captured and reported - Discuss the use of Uniform Crime Reporting (UCR) and Incident-Based Reporting Systems (IBRS) as it relates to your selected agency.
|
|
Describe the three elements for inferring causation
: Provide (a) definitions and (b) examples of description, prediction, determination of cause, and explanation as goals of scientific research.
|