Answer only question 28.

6.2 26. A company has two alternatives for meeting a customer requirement for 8$0,000 units of a part used in office printers. If done in-house, fixed cost would be $1,400,000 with variable cost at $1.90 per unit. Alternative two is to outsource for a total cost of $3.50 per unit. Determine the breakeven point and determine if they should make the item in-house or outsource it. 27. A hospital is evaluating whether to outsource or perform in-house a large set of blood and urine laboratory tests. The fixed cost of the laboratory located in the hospital is $800,000 and the weighted average variable cost per test if performed in-house is $28.75. A third-party lab located one city block from the hospital will perform the same tests and distribute the results electronically to the hospital at a price of $32.00. If the annual volume last year was 250,000 tests, should the hospital outsource or make-in-house? 28. Industrial Products, Inc. has two alternatives for manufacturing 12,000 industrial 100 -horse power electric motors per year. If done in-house, fixed cost would be $2,100,000 with variable cost at $6,800 per unit. Alternative two is to outsource for a total cost of $7,300 per unit. a. What is the break-even quantity? b. Should the firm make-in-house or outsource? 64. 29. Using the information about customer vehicle traffic to and from a proposed new sports stadium (not built yet), find the best location for the stadium that minimizes total distance travelled using the center-of-gravity method. Use the center-of-gravity method to determine an ideal location for a service center