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Chapter 4 1. Insourcing incurs a fixed cost of $1,000 and a $5 variable cost. Outsourcing incurs a fixed cost of $2,000 and a $2 variable cost. What is the indifference point? 2. Yannis Corporation is trying to decide whether to produce its own subassemblies or outsource them. In-house production costs would include an annual fixed cost of $250,000, materials costs per unit of $7, and labor costs per unit of $5. Teshtown, Inc. has agreed to provide the subassemblies for an annual cost of $400,000 and a unit cost of $8 per subassembly. Over what ranges of demand is each option best? 3. Annual fixed costs are $900,000 and $800,000 for outsourcing and insourcing, respectively, and variable costs are $28 and $32 for outsourcing and insourcing, respectively. If current annual demand is 22,000 units, by how much must demand increase in order for outsourcing to become economical ? Chapter 5 4. Suppose that product has three parts, each of which must won in order for the product to \function. The reliabilities of the parts are 898.933, and 446, respectiveWirat is the reliability of the reduct? he 935 19.2 Chapter 6 067 och tez 5. Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data: whats the question! Sample Mean Range 1 15.2 1.8 2 14.6 0.7 3 16.5 0.5 4 18.1 0.4 5 13.2 0.2 6 16.0 0.4 7 15.9 0.5 8 14.8 0.9 6. Eight samples of n= 50 were taken by an operator at a workstation in a production process. The number of defective items in each sample was recorded as follows. Number of