Question: [ 4 pts. ) XEON Electronics is trying to reduce supply chain risk by making more responsible make-buy decisions through improved cost estimation A high-use

 [ 4 pts. ) XEON Electronics is trying to reduce supply

[ 4 pts. ) XEON Electronics is trying to reduce supply chain risk by making more responsible make-buy decisions through improved cost estimation A high-use component can be purchased for $25 per unit with delivery promised within a week. Alternatively, XEON can make the component in-house and have it readily available at a material cost of S4 per unit, if equipment costing $125,000 is purchased. Labor and other operating costs are estimated to be $40,000 per year over the study period of 7 years Salvage is estimated at 9% of first cost and interest is assumed to be 7% per year. Which of the following value is closest to the break- even quantity? Select one: a. 3,978 b. 2,947 c2,063 d. 1,916

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!