Please see the attached image. Backward Problem concept is similar to the number of pixels your cell phone camera uses being related to the quality of the photo. production is $\backslash (\backslash$$ $110\backslash )$ per thousand units while shipping and quality control costs $\backslash (\backslash$$ $5\backslash )$ per thousand units each. equipment will last $10$ years, this project is being considered over a $10$ year timeframe.

Suppose this firm has asked you to analyze this problem and report the number of units needed over the life of the project to make bringing production in$-$house a viable option. cells as equal to the "Quantity $($thousands of units$)"$ cell.

b$)$ Solve for the Total Cost of each option for LED procurement. In the "Cost Differential" cell, subtract the the total cost of bringing production in$-$house from the total cost of outsourcing.

c$)$ Using goal seek, find the quantity of LED needed to make the costs between these two options equal. What is this quantity?

Costs for Outsourcing

Source

Contract Negotiation

Contract Enforcement

Production

Shipping

Quality Control

Quantity $($thousands of units$)$

Cost Differential

Costs for Backward Integration

d$)$ Suppose the company used for outsourcing decides to raise their price from $\backslash (\backslash$$ $110\backslash )$ per thousand units to $\backslash (\backslash$$ $120\backslash )$ per thousand units. What is the new quantity at which these two proposals are of equal cost?

Costs for Outsourcing

Costs for Backward Integration

Quantity $($thousands of units$)$ Cost Differential

Costs for Backward Integration

Cost savings over $10$ years

$\backslash (\backslash$$ $500,000\mathrm{.}00\backslash )$

Quantity $($thousan

Cost Differential