Question: how to solve the problem below? You are a purchasing analyst at Vermont Syrup, Inc., which is a company that focuses on producing maple syrup.

how to solve the problem below?
how to solve the problem below? You are a
You are a purchasing analyst at Vermont Syrup, Inc., which is a company that focuses on producing maple syrup. Vermont Syrup is deciding whether to bottle Vermont Grade A maple syrup in-house or outsource to the local Maple Co-op. Your task is to conduct an outsourcing analysis and decide should Vermont syrup bottle maple syrup in-house or outsource to the local Maple Co-op. Answer the following questions to complete this responsibility. The estimated yearly production is 5,000 bottles of delicious syrup. The selling price does not change for either in-house production or outsourcing. The in-house fixed costs include the purchase of bottling equipment which is estimated as $100,000. The variable costs for direct labor and materials include bottles, caps and training new employees to run machine that are estimated at $10 per bottle. The Maple Co-co charges $20 per bottle. A. Calculate the cost per unit for in-house production. $ 32 per unit B. Which option (bottle in-house or outsource) is more profitable for Vermont syrup? Outsource, but why? 8. Calculate the yearly break-even production quantity that makes it more profitable for Vermont syrup to bottle syrup in-house. A. In addition to cost, what are other issues that may affect the outsourcing or in- house decision you will recommend

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