Question: Paris Manufacturing that produces computer hard drives has had problems with hard drive defects in the past. The relevant information on their current inspection system

Paris Manufacturing that produces computer hard
Paris Manufacturing that produces computer hard drives has had problems with hard drive defects in the past. The relevant information on their current inspection system follows. Current Manual Inspection System Annual fixed cost - $63,000 Inspection variable cost per unit = $16.00 A marketing representative of NEW-SPEC, a firm that specializes in providing manual inspection processes for other firms, approached Paris Manufacturing and offered to inspect parts for $23.50 each with no fixed cost. It assured Paris Manufacturing that the accuracy and quality of its manual inspections would equal that of the automated inspection system. Demand for the upcoming year is forecast to be 6,000 units. Should the manufacturer accept the offer? This problem includes break-even calculations. For a review of how to calculate break-even analysis, please refer to Chapter 6 - Equations 6.1,6.2, and 6.3. Round your answer for the breakeven volume to the nearest whole number and round your answer for the amount of saving/loss to the nearest dollar. Breakeven volume: Since the annual demand of 6,000 hard drives is -Select-than the breakeven volume, the firm -Select accept the offer. They will -Select- $ by outsourcing hard drives

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