Question: Current Attempt in Progress Gabriela Manufacturing must decide whether to insource or outsource a new toxic-free miracle carpet cleaner that works with its Miracle Carpet

Current Attempt in Progress Gabriela
Current Attempt in Progress Gabriela Manufacturing must decide whether to insource or outsource a new toxic-free miracle carpet cleaner that works with its Miracle Carpet Cleaning Machine. If it decides to insource the product, the process would incur $260,000 of annual fixed costs and $1.20 per unit of variable costs. If it is outsourced, a supplier has offered to make it for an annual fred cost of $70,000 and a variable cost of $2.00 per unit in variable costs. a. Given these two alternatives, determine the indifference point (where total costs are equal) Indifference point units b. If the expected demand for the new miracle cleaner is 400,000 units, what would you recommend that Gabriela Manufacturing do? is a cheaper alternative. The actual difference between the total costs of insourcing and outsourcing may be computed to be $ Attempts:0 of 1 used Submit Answer Save for Latur

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