Question: Please answer all three questions with a sentence or so. 10-10 If setup cost is $10,000 to switch from parts X to Y and you

Please answer all three questions with a sentence or so.

 Please answer all three questions with a sentence or so. 10-10

10-10 If setup cost is $10,000 to switch from parts X to Y and you got an order for 100 Y's and you have no inventory to draw on, would you honor the order and pay out $10,000 to make 100 Y's? 10-11 As a purely personal opinion, what would you estimate as a minimum order quantity before you spend $10,000 to start producing part Y? 10-12 Suppose you reduce setup costs to essentially zero, would you accept an order for 100 Y's supposing you have no inventory to draw on

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!