Question: An electronics firm is considering two different manufacturing processes to make a new product. The first process is less capital-intensive, with fixed costs of $200.000

An electronics firm is considering two different

An electronics firm is considering two different manufacturing processes to make a new product. The first process is less capital-intensive, with fixed costs of $200.000 per year and variable costs of $2,400 per unit. The second (more capital-intensive process has fixed costs of $1,000,000 per year but has variable costs of $450 per unit. The firm expects to sell the product at $3,200 per unit. Question 41 (1 point) For the more capital-intensive process, if the firm must process 1.500 units per year, how high must the variable costs be for the firm to break-even?? Answer to two decimal places. Your Answer: Your Answer Question 42 (1 point) Now suppose that the firm is considering a third option - outsourcing the product at a cost of $2,900 per unit. Identify the approximate range over which outsourcing provides the lowest cost. What is the bottom of the range that it is the lowest cost? Your Answer: Your Answer Question 43 (1 point) Now suppose that the firm is considering a third option - outsourcing the product at a cost of $2,900 per unit. Identify the approximate range over which outsourcing provides the lowest cost. What is the top of the range that it is the lowest cost? Answer with a whole number. If it is unbounded (i.e. there is not a top of the range) enter the number 2000000 Your Answer: Your Answer Question 44 (1 point) If the firm anticipates producing 1,000 units per year, it should outsource. True False

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