ndustrial Products, Inc. has two alternatives for manufacturing 11,500 industrial 100-horse power electric motors per year. If done in-house, fixed cost would be $2,200,000 with variable cost at $6,700 per unit. Alternative two is to outsource for a total cost of $8,000 per unit. What is the break-even quantity? Round your answer to the nearest whole number. motors Should the firm make-in-house or outsource? Round your answers to the nearest dollar. Total cost if done in-house: $ Total cost if outsourced: $ So, the firm can save $ by
ndustrial Products, Inc. has two alternatives for manufacturing 11,500 industrial 100-horse power electric motors per year. If done in-house, fixed cost would be $2,200,000 with variable cost at $6,700 per unit. Alternative two is to outsource for a total cost of $8,000 per unit. What is the break-even quantity? Round your answer to the nearest whole number. motors Should the firm make-in-house or outsource? Round your answers to the nearest dollar. Total cost if done in-house: $ Total cost if outsourced: $ So, the firm can save $ by
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter8: Tactical Decision-making And Relevant Analysis
Section: Chapter Questions
Problem 54P
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Industrial Products, Inc. has two alternatives for manufacturing 11,500 industrial 100-horse power electric motors per year. If done in-house, fixed cost would be $2,200,000 with variable cost at $6,700 per unit. Alternative two is to outsource for a total cost of $8,000 per unit. What is the break-even quantity? Round your answer to the nearest whole number. motors Should the firm make-in-house or outsource? Round your answers to the nearest dollar. Total cost if done in-house: $ Total cost if outsourced: $ So, the firm can save $ by -Select- .
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