Basil Industries produces and sells an instrument used in hospital monitoring systems. The instrument uses a...

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Basil Industries produces and sells an instrument used in hospital monitoring systems. The instrument uses a sensor that Basil currently purchases from Suffolk Systems. Suffolk charges Basil $110 each for the 12,000 sensors Basil requires annually. Basil's monitor instrument has a contribution margin of $235.6 and requires 10 hours of processing time to manufacture. Basil's engineers believe the additional cost of purchasing the sensors from Suffolk rather than making them internally is $9.00 per sensor. Purchasing the sensors saves 0.4 hours of processing time required per sensor or 4,800 hours in total. Basil's ability to make monitors is limited by the processing time available. If Basil produced the sensors internally the processing time spent on sensors would reduce the processing time available to manufacture the monitor systems by an equal amount. Given this constraint what is the total net benefit (in terms of profits) of purchasing the sensor from Suffolk? Type your answer... Basil Industries produces and sells an instrument used in hospital monitoring systems. The instrument uses a sensor that Basil currently purchases from Suffolk Systems. Suffolk charges Basil $110 each for the 12,000 sensors Basil requires annually. Basil's monitor instrument has a contribution margin of $235.6 and requires 10 hours of processing time to manufacture. Basil's engineers believe the additional cost of purchasing the sensors from Suffolk rather than making them internally is $9.00 per sensor. Purchasing the sensors saves 0.4 hours of processing time required per sensor or 4,800 hours in total. Basil's ability to make monitors is limited by the processing time available. If Basil produced the sensors internally the processing time spent on sensors would reduce the processing time available to manufacture the monitor systems by an equal amount. Given this constraint what is the total net benefit (in terms of profits) of purchasing the sensor from Suffolk? Type your answer...

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Lets break this down stepbystep Basil requires 12000 sensors annually Suffolk charges 110 p... View the full answer