A global manufacturer of electrical switching equipment (ESE) is considering outsourcing the manufacturing of an electrical...
A global manufacturer of electrical switching equipment (ESE) is considering outsourcing the manufacturing of an electrical breaker used in the manufacturing of switch boards. The company estimates that the annual fixed cost of manufacturing the part in-house, which includes equipment, maintenance, and management, amounts to $9 million. The variable cost of labor and materials are $12.00 per breaker. The company has an offer from a major subcontractor to produce the part for $18.00 per breaker. The company should consume more than ________ breakers per year to make the manufacturing the part in-house option the least costly. (Enter your response rounded to the nearest whole number.)
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A global manufacturer of electrical switching equipment (ESE) is
considering outsourcing the manufacturing of an electrical...
A global manufacturer of electrical switching equipment (ESE) is considering outsourcing the manufacturing of an electrical...
A global manufacturer of electrical switching equipment (ESE) is considering outsourcing the manufacturing of an electrical breaker used in the manufacturing of switch boards. The company estimates that the annual fixed cost of manufacturing the part in-house, which includes equipment, maintenance, and management, amounts to $9 million. The variable cost of labor and materials are $12.00 per breaker. The company has an offer from a major subcontractor to produce the part for $18.00 per breaker. If the ESE manufacturer is...
A global manufacturer of electrical switching equipment (ESE) is considering outsourcing the manufacturing of an electrical...
A global manufacturer of electrical switching equipment (ESE) is considering outsourcing the manufacturing of an electrical breaker used in the manufacturing of switch boards. The company estimates that the annual fixed cost of manufacturing the part in-house, which includes equipment, maintenance, and management, amounts to $10 million. The variable cost of labor and materials are $13.00 per breaker. The company has an offer from a major subcontractor to produce the part for $20.00 per breaker. a. How many breakers would...
A large global automobile manufacturer is considering outsourcing the manufacturing of a solenoid used in the transmissi...
A large global automobile manufacturer is considering outsourcing the manufacturing of a solenoid used in the transmission of its SUVs. The company estimates that annual fixed costs of manufacturing the part in-house, which include equipment, maintenance, and management, amounts to $7.7 million. The variable costs of labor and material are $6.50 per unit. The company has an offer from a major subcontractor to produce the part for $10.25 per unit. However, the subcontractor wants the company to share in the...
Current-Control Inc. manufactures a variety of electrical switches. The company is currently manufacturing all of its...
Current-Control Inc. manufactures a variety of electrical
switches. The company is currently manufacturing all of its own
component parts. An outside supplier has offered to sell a switch
to Current-Control for $32 per unit. To evaluate this offer,
Current-Control has gathered the following information relating to
its own cost of producing the switch internally:
Per
Unit
12,000 Units
per Year
Direct materials
$ 12
$144,000
Direct labour
10
120,000
Variable manufacturing overhead
3
36,000
Fixed manufacturing overhead, traceable
8*
96,000...
13. A manufacturing company, called "Manufacturing Co", must purchase new equipment for one of its assembly...
13. A manufacturing company, called "Manufacturing Co", must purchase new equipment for one of its assembly lines. Three different options (A, B, and C) are under consideration. Option A, which has an acquisition cost of $110,000, is standard equipment that has already been on the market for a number of years. Options B and C are new equipment recently developed by a new company, called "EquipmentCo". EquipmentCo will offer a reduced price of $75,000 for option B and $25,000 for...
8.12 The Holtz Company manufactures a variety of electronic printed circuit boards (PCBS) that go into...
8.12 The Holtz Company manufactures a variety of electronic printed circuit boards (PCBS) that go into cellular phones. The company has just received an offer from an outside supplier to pro- vide the electrical soldering for Holtz's Motorola product line (Z-7 PCB, slimline). The quoted price is $4.80 per unit. Holtz is interested in this offer, since its own soldering operation of the PCB is at its peak capacity. Outsourcing option: The company estimates that if the supplier's offer were...
Investment Evaluation Analysis Widget Company is considering upgrading its manufacturing equipment. The Vice-President of Production has...
Investment Evaluation Analysis Widget Company is considering upgrading its manufacturing equipment. The Vice-President of Production has identified three possible actions Widget could take to accomplish the upgrade, though none is required. One option would upgrade their current equipment and the other two options would replace the existing equipment with purchases of new equipment. The review committee has asked you to review each of the options to identify relevant cost data and to prepare a schedule comparing the three options to...
AL AIN MANUFACTURING COMPANY- AAC For 6 years, Al Ain Company (AAC) only produced one product:...
AL AIN MANUFACTURING COMPANY- AAC For 6 years, Al Ain Company (AAC) only produced one product: the basic electric kettle for boiling water. The kettle was the first on the market to have a reliability system enabling it to turn itself off at the exact moment when the water had boiled. It is also light enough to be carried easily, looked modern and was quite robust. From a manufacturing point of view, the kettle consisted of pressed stainless steel body...
CORRECT & COMPLETE ANSWER NEEDED! THANK YOU SO MUCH IN ADVANCE! Chaos Manufacturing had the following...
CORRECT & COMPLETE ANSWER NEEDED! THANK YOU SO MUCH IN
ADVANCE!
Chaos Manufacturing had the following financial information for the year ended December 31 2019: Inventory Balances: Beginning Ending Work in Progress $ 90,000 $ 60,000 Finished Goods $57,000 $ 67,000 Raw Materials $ 10,000 $ 20,000 During the year, the budgeted and actual costs were as follows: | Note Budget Actual Raw Materials 1 200,000 See note 1 Labour 2 440,000 418,000 Depreciation Factory Equipment 72,000 72,000 Depreciation Office...
Garland Chocolates Shanti Suppiah, director of operations at the Garland Chocolates plant in Durham, North Carolina,...
Garland Chocolates Shanti Suppiah, director of operations at the Garland Chocolates plant in Durham, North Carolina, was preparing for a team meeting scheduled for Monday, March 18, to decide what to do about declining margins for the Edgeworth Toffee brand. Options were to invest in new equipment or outsource manufacturing and packing. It was Wednesday, March 12, and Shanti needed to prepare her analysis and develop a recommendation prior to the meeting. Garland Chocolates Headquartered in London, UK, Garland Chocolates...
A global manufacturer of electrical switching equipment (ESE) is considering outsourcing the manufacturing of an electrical breaker used in the manufacturing of switch boards. The company estimates that the annual fixed cost of manufacturing the part in-house, which includes equipment, maintenance, and management, amounts to $10 million. The variable cost of labor and materials are $13.00 per breaker. The company has an offer from a major subcontractor to produce the part for $20.00 per breaker. a. How many breakers would...
Current-Control Inc. manufactures a variety of electrical
switches. The company is currently manufacturing all of its own
component parts. An outside supplier has offered to sell a switch
to Current-Control for $32 per unit. To evaluate this offer,
Current-Control has gathered the following information relating to
its own cost of producing the switch internally:
Per
Unit
12,000 Units
per Year
Direct materials
$ 12
$144,000
Direct labour
10
120,000
Variable manufacturing overhead
3
36,000
Fixed manufacturing overhead, traceable
8*
96,000...
13. A manufacturing company, called "Manufacturing Co", must purchase new equipment for one of its assembly lines. Three different options (A, B, and C) are under consideration. Option A, which has an acquisition cost of $110,000, is standard equipment that has already been on the market for a number of years. Options B and C are new equipment recently developed by a new company, called "EquipmentCo". EquipmentCo will offer a reduced price of $75,000 for option B and $25,000 for...
8.12 The Holtz Company manufactures a variety of electronic printed circuit boards (PCBS) that go into cellular phones. The company has just received an offer from an outside supplier to pro- vide the electrical soldering for Holtz's Motorola product line (Z-7 PCB, slimline). The quoted price is $4.80 per unit. Holtz is interested in this offer, since its own soldering operation of the PCB is at its peak capacity. Outsourcing option: The company estimates that if the supplier's offer were...
AL AIN MANUFACTURING COMPANY- AAC For 6 years, Al Ain Company (AAC) only produced one product: the basic electric kettle for boiling water. The kettle was the first on the market to have a reliability system enabling it to turn itself off at the exact moment when the water had boiled. It is also light enough to be carried easily, looked modern and was quite robust. From a manufacturing point of view, the kettle consisted of pressed stainless steel body...
CORRECT & COMPLETE ANSWER NEEDED! THANK YOU SO MUCH IN
ADVANCE!
Chaos Manufacturing had the following financial information for the year ended December 31 2019: Inventory Balances: Beginning Ending Work in Progress $ 90,000 $ 60,000 Finished Goods $57,000 $ 67,000 Raw Materials $ 10,000 $ 20,000 During the year, the budgeted and actual costs were as follows: | Note Budget Actual Raw Materials 1 200,000 See note 1 Labour 2 440,000 418,000 Depreciation Factory Equipment 72,000 72,000 Depreciation Office...
Garland Chocolates Shanti Suppiah, director of operations at the Garland Chocolates plant in Durham, North Carolina, was preparing for a team meeting scheduled for Monday, March 18, to decide what to do about declining margins for the Edgeworth Toffee brand. Options were to invest in new equipment or outsource manufacturing and packing. It was Wednesday, March 12, and Shanti needed to prepare her analysis and develop a recommendation prior to the meeting. Garland Chocolates Headquartered in London, UK, Garland Chocolates...
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O’Deesha Company has the following information available:
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$20,000
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