Question: 5. What is the cost difference (make - buy)? Round your answer to the nearest dollar. Use the minus sign to enter a negative difference,

5. What is the cost difference (make - buy)?5. What is the cost difference (make - buy)?5. What is the cost difference (make - buy)?

5. What is the cost difference (make - buy)? Round your answer to the nearest dollar. Use the minus sign to enter a negative difference, if any. $ 6. To obtain the lowest production cost, should the firm make or buy the part? The firm should the part. D9 \begin{tabular}{|c|c|cc|} \multicolumn{1}{|c|}{ A } & B & D \\ \hline 7 & Variable (per unit) & $7.00 & $11.00 \\ \hline 8 & & \\ \hline 9 & & Difference (Fixed Costs) \\ \hline 10 & & Difference (Variable Costs) \\ 11 & & \\ 12 & & Break-even Units \\ 13 & & Break-even Cost \\ 14 & & \\ \hline 15 & & Total Cost (Make) \\ 16 & & Total Cost (Buy) \\ \hline 17 & & \end{tabular} Suppose that a firm has the option to make or buy a part. Its annual requirement is 11,000 units. A supplier is able to supply the part at $11 per unit. The firm estimates that it costs $800 to prepare the contract with the supplier. To make the part, the firm must invest $23,000 in equipment, and the firm estimates that it costs $7 per unit to make the part. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Questions 1. What is the break-even point? Round your answer to the nearest whole number. 2. What is the total cost at the break-even point? Round your answer to the nearest dollar. $ 3. What is the total cost for the make option? Round your answer to the nearest dollar. $ 4. What is the total cost for the buy option? Round your answer to the nearest dollar

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 General Management Questions!