Calculate the required saving in fixed cost in order to achieve the objective from the following data:
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Calculate the required saving in fixed cost in order to achieve the objective from the following data:
HC Company manufactures 100 luxury yachts per month. Included in each yacht is a compact media center. Company manufactures media center in-house, but is considering the possibility of outsourcing that function. At present, the variable cost per unit is $275, and the fixed costs are $39,000 per month. The CEO wishes to boost operational income by $5,000. He has an offer from a foreign producer to provide the media centers at a contract rate of $300 per Unit.:
Related Book For
Managing Business Process Flows Principles of Operations Management
ISBN: 978-0136036371
3rd edition
Authors: Ravi Anupindi, Sunil Chopra, Sudhakar Deshmukh, Jan Van Mieg
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