Question: Roedel's sales forecast indicates that 7 , 0 0 0 small integrated keyboard tablet stands and 5 , 0 0 0 large integrated keyboard tablet

Roedel's sales forecast indicates that 7,000 small integrated keyboard tablet stands and 5,000 large integrated keyboard tablet stands will be needed to satisfy demand during the upcoming Christmas season. Because only 500 hours of in-house manufacturing time are available, Roedel is considering purchasing some, or all of the subassemblies from outside suppliers. If Roedel manufactures a subassembly in-house, it incurs a fixed setup cost as well as a variable manufacturing cost. The following table shows the setup cost, the manufacturing time per subassembly, the manufacturing cost per subassembly, and the cost to purchase each of the subassemblies from an outside supplier:
ManufacturingSubassemblySetup Cost ($)Time per Unit (min.)Cost per Unit ($)Purchase Cost per Unit ($)Keyboard1,0002.10.400.65Small top flap1,2002.22.903.35Large top flap1,9003.03.153.70Small vertical stand1,5000.80.300.55Large vertical stand1,5001.00.550.90
If required, round your answers to nearest whole number.
(a)Determine how many units of each subassembly Roedel should manufacture and how many units of each subassembly Roedel should purchase. If an amount is zero, enter 0. Round your answers to the nearest whole number, if necessary.
QuantitySubassemblyProductionPurchaseKeyboardSmall Top FlapLarge Top FlapSmall Vertical StandLarge Vertical Stand
What is the total manufacturing and purchase cost associated with your recommendation?$(b)Suppose Roedel is considering purchasing new machinery to produce large top flaps. For the new machinery, the setup cost is $3,000; the manufacturing time is 2.5 minutes per unit, and the manufacturing cost is $2.60 per unit. Assuming that the new machinery is purchased, determine how many units of each subassembly Roedel should manufacture and how many units of each subassembly Roedel should purchase. If an amount is zero, enter 0.
QuantitySubassemblyProductionPurchaseKeyboardSmall Top FlapLarge Top FlapSmall Vertical StandLarge Vertical Stand
What is the total manufacturing and purchase cost associated with your recommendation?$Do you think the new machinery should be purchased? Explain.
(i)The new machinery is too expensive for Roedel to purchase.(ii)Assuming the new machinery can be used in future seasons, it would be beneficial for Roedel to purchase the new equipment.
- Select your answer -Option (i)Option (ii)Item 23 a keyboard, a top flap, and a vertical stand. subassembly, the manufacturing cost per subassembly, and the cost to purchase each of the subassemblies from an outside suppller:
If required, round your answers to nearest whole number.
What is the total manufacturing and purchase cost associated with your recommendation?
What is the total manufacturing and purchase cost associated with your recommendation?
Do you think the new machinery should be purchased? Explain.
(I) The new machinery is too expensive for Roedel to purchase.
(ii) Assuming the new machinery can be used in future seasons, it would be beneficlal for Roedel to purchase the new equipment.
- Select your answer - V
Roedel's sales forecast indicates that 7 , 0 0 0

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