Question: Please answer all correctly and I will give good rating! Use the same information for this questions and the next three questions. The Green Machine
Please answer all correctly and I will give good rating!
Use the same information for this questions and the next three questions. The Green Machine Manufacturing Company has the option to make or buy a component part for one of its lawnmowers. The annual requirement is 25,000 units. A supplier is able to supply the parts for $10 per piece. Green Machine estimates that it will cost $1000 to prepare the contract with the supplier. To make the parts in-house, Green Machine must invest $100,000 in capital equipment. They estimate it will cost $8 per piece to produce the part in-house. Carry all calculations out to two decimal places. What is the breakeven quantity? Greater than 65,000 Greater than 45000 but less than or equal to 50,000 Less than or equal to 30,000 Greater than 30,000 but less than or equal to 45,000 Greater than 50,000 but less than or equal to 65,000 What is the total cost at the breakeven point? Greater than $370,000 but less than or equal to $575,000 Less than or equal to $265,000 Greater than $575,000 Greater than $265,000 but less than or equal to $370,000 If the demand is 25,000 units, should Green Machine make or buy the part? Buy the part Neither Both Make the part Not enough information What is the cost savings from making the correct decision? Greater than $25,000 but less than or equal to $30,000 Greater than $20,000 but less than or equal to $25,000 Less than or equal to $20,000 Greater than $30,000 but less than or equal to $35,000 Greater than $35,000 Use the same information for this question and the next two questions. The Green Machine Manufacturing Company is also trying to decide which of two suppliers to purchase engines from. Green Machine has agreed to cover the tooling cost for the supplier selected. The relevant information is provided below. Carry all calculations out to two decimal places. What is the total cost of ownership for Supplier 1 ? Greater than $37,200,000.00 but less than or equal to $37,400,000.00 Greater than $36,800,000.00 but less than or equal to $37,000,000.00 Greater than $37,400,000.00 Greater than $37,000,000.00 but less than or equal to $37,200,000.00 Less than or equal to $36,800,000.00 What is the total cost of ownership for Supplier 2? Greater than $36,700,000.00 but less than or equal to $36,900,000.00 Less than or equal to $36,500,000.00 Greater than $37,100,000.00 Greater than $36,500,000.00 but less than or equal to $36,700,000.00 Greater than $36,900,000.00 but less than or equal to $37,100,000.00 Which supplier should be chosen based on your TOC analysis? Supplier 1 Cannot tell They are equally qualified Supplier 2








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