Question: Given the following costs, which process should be used for an order of 400 pieces of a given part? What will be the unit cost
Given the following costs, which process should be used for an order of 400 pieces of a given part? What will be the unit cost for the process selected?
|
| Buy | Process A | Process B |
| Setup |
| $40.00 | $130.00 |
| Tooling |
| $15.00 | $20.00 |
| Labor/ unit |
| $4.10 | $3.90 |
| Material/unit |
| $2.00 | $2.00 |
| Purchase cost | $6.10 |
|
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