[6] OM 5 Chapter 5 #11.* In the previous problem, assume the cost factors given have not changed. A marketing representative of NEW-SPEC, a firm that specializes in providing manual inspection processes for other firms, approached Paris Manufacturing and offered to inspect parts for $19 each with no fixed cost. They assured Paris Manufacturing the accuracy and quality of their manual inspections would equal the automated inspection system. a) What is the BEP in this case? b) Demand for the upcoming year is forecast to be 8,000 units. Should the manufacturer accept the offer? [6] OM 5 Chapter 5 #11.* In the previous problem, assume the cost factors given have not changed. A marketing representative of NEW-SPEC, a firm that specializes in providing manual inspection processes for other firms, approached Paris Manufacturing and offered to inspect parts for $19 each with no fixed cost. They assured Paris Manufacturing the accuracy and quality of their manual inspections would equal the automated inspection system. a) What is the BEP in this case? b) Demand for the upcoming year is forecast to be 8,000 units. Should the manufacturer accept the offer? ..l Sprint LTE 6:16 PM 0 90% ISJOMS Chapter 5810A manager of Paris Manufacturing that produces computer hard drives is planning to lease a new automated inspection system. The manager believes the new system will be more accurate than the current manual inspection process. The firm has had problems with hard drive defects in the past and the automated system should help catch these defects before the drives are shipped to the final assembly manufacturer. The relevant information follows. Current Manual Inspection System Annual fixed cost-$35,000 Inspection variable cost per unit 515 per unit New Automated Inspection System Annual fixed cost = $165,000 Inspection variable cost per unit - $0.55 per unit a) What is the BEP for this decision? b) Suppose annual demand is 8,000 units. Should the firm lease the new inspection system