Question: Flounder Company is currently purchasing a component for $11 but is considering making the part internally. The plant engineer has suggested two alternatives. The first

Flounder Company is currently purchasing a component for $11 but is considering making the part internally. The plant engineer has suggested two alternatives. The first alternative would increase fixed costs by $11,600 per month and incur variable costs of $6 per part. The second alternative would increase fixed costs by $19,800 and incur variable costs of $4 per part. Your answer is correct. What level of volume is necessary to justify making the part? (Round answers to 0 decimal places, e.g. 125.) Level of volume First alternatives 12320) units Second alternatives 72829 units Your answer is partially correct. Try again. Over what relevant ranges of volume is each alternative optimal? 1. For demand under 2320) units, purchase the part 2. X For demand between 2320) and 2829 units, adopt Alternative 1 3 X For demand over 2829 units, adopt Alternative 2
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