Question: A company is about to begin a production process. They plan to manufacture commercial bearings, specifically the fifth wheel for tractors. Under consideration is a

A company is about to begin a production process.

A company is about to begin a production process. They plan to manufacture commercial bearings, specifically the fifth wheel for tractors. Under consideration is a manual process, computerized process, and a collaborative venture with a third party (outsourcing the metal fabrication process). The manual process has fixed costs of $75,100 per month and variable costs of $47 per unit. The computerize process has fixed costs of $125,350 per month and variable costs of $35 per unit. By outsourcing part of the process, the internal fixed costs would be reduced and projected to be $95,500 per month and have variable costs of $38 per unit. Selling price for the bearing is $147.50 a. At what output should the company continue to manufacture the bearings manually? (Select] b. At what output does the computerized process become less expensive than considering outsourcing? [Select] c. At what output does the collaborative venture make sense in terms of outsourcing part of the process? [Select] d. If the forecasted demand level for the bearings was at 2800 per month, which option should be considered and what would the total cost be (based on fixed & variable cost)? [Select]

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