Question: Stanley Inc., has a need for a specific component in there manufacturing process. They has requested bids from three of it's subcontractors. Company A

Stanley Inc., has a need for a specific component in there manufacturing process. They has requested bids

Stanley Inc., has a need for a specific component in there manufacturing process. They has requested bids from three of it's subcontractors. Company A has an initial cost of $47,500.00 and variable costs of $76.00 per unit. Company B has an initial cost of $66,000 and variable costs of $56.75 per unit. Company C has an initial cost of $75,000 and variable costs of $51.50 per unit. a. What are the crossover points? A [Select] [Select] :C[Select] B b. At what output does Company B become less expensive than Company A? [Select] c. At what output does Company C become less expensive than Company B? [Select] d. The forecasted amount of components required for the manufacturing process is 1,500 units, which company should Stanley Inc. choose? [Select] , and what is the cost? [Select]

Step by Step Solution

3.47 Rating (160 Votes )

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 Accounting Questions!