Technological breakthrough in snow board finish application

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Reference no: EM131433001

Fast Finish, Inc. (FFI) has made a technological breakthrough in snow board finish application. FFI will apply the finish for $0.23 per unit in variable costs plus a fixed annual cost of $230,000. Use the cost and demand information given in Problem 3 for Downhill Boards to evaluate this proposal. • (a)What will it cost Downhill Boards to outsource the finishing process? • (b)At what demand level does it make sense economically to outsource the finishing process? • (c)What additional factors should be considered when making this outsourcing decision?

Reference no: EM131433001

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