Question: Descriptive Model Example A company is deciding whether to outsource a product or make it in-house. The data is given below for both scenarios. Using

Descriptive Model Example

A company is deciding whether to outsource a product or make it in-house. The data is given below for both scenarios. Using an Excel Model for analysis,

A) which is better: Outsourcing or In-house production?

B) What is the break-even point to decide whether to outsource or manufacture in-house?

Manufactured in-house: Outsourced:

Fixed cost: $50,000 Unit cost: $175

Unit variable cost: $125 Production volume: 1500

Production volume: 1500

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