Jonnie Faith, a buyer for Global Metrics, is determining the make or buy quantity for a new

Question:

Jonnie Faith, a buyer for Global Metrics, is determining the make or buy quantity for a new instrument. She can have them made for $1200 each with an equipment investment of $80,000, or Global could buy them for $1800.

a. Determine the break-even quantity and break-even cost.

b. If they needed 180, what should they do?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Operations Management A Supply Chain Process Approach

ISBN: 978-1483383064

1st edition

Authors: Joel D. Wisner

See More Books

Question Posted: May 31, 2018 01:34 AM

See More Questions

What is the make or buy break-even cost?
Though this board acted badlywith gross negligencethis board did not act in bad faith. Chandler, Chancellor Facts: A complaint was filed in Delaware Court by John McPadden that alleged the following...
How does opportunity cost enter into the make or buy decision?
The Cano Company is decentralized, and divisions are considered investment centers. Cano has one division that manufactures oak dining room chairs with upholstered seat cushions. The Chair Division...
Quick Start Company just starting business made the following four inventory purchases in June: Date ____________Total units ___________Total amount June...
Selzik Company makes super-premium cake mixes that go through two processing departments, Blending and Packaging. The following activity was recorded in the Blending Department during July: All...
House Handy Products manufactures plastic products and utensils for use in several situations. The company produces and sells a vast range of products that can be used in the home (plastic cooking...
The United Kingdom started regulating the size of grocery stores in the early 1990s, and today the average size of a typical U. K. grocery store is roughly half the size of a typical U. S. store and...
Crown Brewing issued new shares in 2021 but some investors had not paid their capital\ contribution by December 31st, 2021. Hence, Crown Brewing recognizes a contributed capital\ receivable. No other...
Product X is a consumer product with a retail price of $12.95. Retailers margins on the product are 40% and wholesalers margins are 8% (based on the selling price). Total retail size of the market in...
A firm can purchase whozits for $18 and sell them for $29. If they purchase 5000 units, how many units do they have to sell to break even? They could buy a whozits machine for $30,000 and make...
Management wants to know how many units they have to sell to break even.
How much should a healthy kitten weigh? A healthy 10-week-old (domestic) kitten should weigh an average of = 24.5 ounces with a (95% of data) range from 14 to 35 ounces. Let x be a random variable...
A protein solution required the following dilutions before an assay could be performed: 0.50 mL was diluted to a volume of 25 mL, and then 1 mL of the diluted sample was mixed with 9 mL dH An aliquot...
Alkalinity is defined as a measure of the buffering capacity of water to neutralize strong acid ( i . e . the water's ability to prevent its own pH from changing when an acid is added to the water )...
It has been determined that the steady-state diffusion flux of nitrogen through a steel plate is 1.5 10-8 kg/m.s at a temperature of 1300 K (1027C), and for a concentration gradient of -300 kg/m....
A 6.0-m diameter cylindrical tank contains a hazardous material dissolved in mostly water. A leak occurred in the tank because a 0.1 m diameter pipe located 1.0 m above the bottom of the tank was...
Tatty acid and an unsaturated fatty acid. 15.6 Stearic acid and linoleic acid each have 18 carbon atoms. Why does stearic acid melt at 69 C but linoleic acid melts at -5 C? 15.7 Draw the line-angle...
Consider once again the swimmer in Example 4.7. Assume she can swim at a velocity of 0.30 m/s and the river is 15 m wide. She needs to get across the river as quickly as possible. (a) What direction...
Let X be a random variable taking on values a1, a2, . . . , pr with probabilities p1, p2, . . . , pr and with E(X) = μ. Define the spread of X as follows: This, like the standard deviation, is a...
What are some common examples of intermodal transportation? Briefly describe how each works.
Given the following Muthers grid, design a revised layout on a 2 Ã 3 grid: Department (1) Department (2) Department (3) Department (4) Department (5) Department (6) Closeness Rating Absolutely...
Explain the service process design matrix. How can organizations use it when examining their service processes?
Explain why leasing is an option for a company expansion. include, what leasing is and how it will benefit the company in it's expanding efforts. Also, how is capital or operating leasing recorded on...
Discuss the following statement: " A head of state signs a treaty on behalf of his country in excess of authority of his country, such treaty shal be void for inconsistency with domestic law of the...
A company is looking at new equipment with an installed cost of $415,329. This cost will be depreciated straight-line to zero over the project's 5-year life, at the end of which the equipment can be...

Jonnie Faith, a buyer for Global Metrics, is determining the make or buy quantity for a new

Question:

Step by Step Answer:

a Determine the br...View the full answer

Operations Management A Supply Chain Process Approach

Students also viewed these Business questions