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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