The variable cost (material and labor) required to assemble a children's toy in-house is $0.60/unit. The...
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The variable cost (material and labor) required to assemble a children's toy in-house is $0.60/unit. The fixed overhead cost of operating an assembly line is $ 1,000,000 per year. However, it is possible to outsource the assembly operations from a contract manufacturer at a cost of $0.90/unit. If it is possible to sell a children's toy at a price of $1.00/unit, determine the minimum capacity needed for a profitable children's toy assembly operation. The variable cost (material and labor) required to assemble a children's toy in-house is $0.60/unit. The fixed overhead cost of operating an assembly line is $ 1,000,000 per year. However, it is possible to outsource the assembly operations from a contract manufacturer at a cost of $0.90/unit. If it is possible to sell a children's toy at a price of $1.00/unit, determine the minimum capacity needed for a profitable children's toy assembly operation.
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Related Book For
Managing Supply Chain and Operations An Integrative Approach
ISBN: 978-0132832403
1st edition
Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb
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