QUESTION 11 10000 As the CEO of Hakoopian clothing company you want to decide whether to manufacture a particular produc

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Question 11 10000 As The Ceo Of Hakoopian Clothing Company You Want To Decide Whether To Manufacture A Particular Produc 1 (47.12 KiB) Viewed 50 times

QUESTION 11 10000 As the CEO of Hakoopian clothing company you want to decide whether to manufacture a particular product or outsource its production. Your business analysis team develops a spreadsheet model and uses Excel's What If analysis to analyze "Savings due to Outsourcing based on different scenarios. The results below are provided to you as the CEO. D M 1 Parameters 2 Outsourcing Cost per unit 450 Saviny due to outsourcing per prod. volume Savings due to outsourcing per prod. volume and outsource cost per unit 3 Prod. Vol JS 14,500.00 14.500.00 $ 355 450 $ 4 Fixed Cost $ 25,000.00 10000 $21.500 1000 $24.500 $23,000 $21,500 $20,000 $1,500 5 Material cost per unit $ 2.15 20000 $18,000 2000 524,000 521.000 S1600 $15.000 $12.000 6 Labor cost per unit $ 2.00 30000 $14,500 10000 $23.500 $19,000 514.500 510,000 $5.500 7 511,000 40000 $13,000 517.000 $11,000 55,000 150.000 3 Model 50000 $7,500 10000 $22.500 $15.000 57.500 50 0975 9 Production Volume oood 000 $4.000 50000 532.000 $11,000 54,000 155.51400 10 10000 5500 $21.500 $11.000 55000.00 11 Total Outsource Cost 5 135,000.00 20000 15.3.000 10000 521.000 59,000 15.01.27.000 12 10000 156 500 3000 520,500 57.000 154.100 20.000.00 13 Total Fixed Cost $ 25,000.00 1000 1510.000 100000 $20.000 55.000 14 Total Material Cost $ 64,500.00 The outsourcing cost per uniti 54.50 me amer 15 Total Labor Cost $ 60,000.00 The amounts in paranthes are Reptive) The first det mest column represent the production volume 16 Total Cost 5 149,500.00 Left column represent production volume The top row amounts Outsourcing Cospeit" 17 Right column represent. Sowing due to outsourcing The amount in each cell represent Saving due to outsourcing 15 Savings due to due to outsourcing 5 14,500.00 19 Assuming that you outsource the production of 90,000 units and the company to which you outsource charges you 54.80 per unit, based on the results above, nam much will be the savings for loss due to outsourcing Note: • Do not use the sign in your answer. For example, if there is a saving of $99, the answer is 99 • Use a negative sign before the amount to show that it is a loss. For example, if there is a loss of 599, the answer is -99. If there is a saving of 399, then thie answer is 99