QUESTION 3 As the CEO of Hakoopian clothing company you want to decide whether to manufacture a particular product or ou

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Question 3 As The Ceo Of Hakoopian Clothing Company You Want To Decide Whether To Manufacture A Particular Product Or Ou 1 (48 KiB) Viewed 44 times

QUESTION 3 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 $10.000 H M 1 Parameters 7 Outsourcing Cost per unit Savings due to outsourcing per pred volume Savings due to outsourcing per prod. volume and outsource cost per unit 3 Prod. Vol 5 14 500.00 14.500.00 $4205 4.50 $ 4.65 $ 430 fed Cost $ 25,000.00 10000 $21.500 Lood $24500 $23,000 521,500 $20.000 SIR 500 5 Material cost per unit $ 2.15 20000 515.000 2000 524.000 $21,000 $11,000 $15.000 $12.000 Labor cost per unit $ 2.00 30000 $14500 $23.500 $19.000 $14.500 $10.000 $5.00 1 40000 $11,000 0000 $23.000 $17.000 $11,000 $5.000 # Model oce 57.500 10000 $22.00 $15.000 $7.500 $0 157.500 9 Production Volume 54.000 OOOO $22.000 $13,000 54,000 155.000) 1514.000 10 10000 5500 $21.500 $11,000 5500 110.000 0.00 11 Total Outsource Cost $ 139,00000 15100 00000 $21.000 $9.000 153.000 515.000.000 12 000 ISSON 2000 520, 500 $7.000 6. ($20.000) 15.00 11 Total Theed Cost $ 25,000.00 100000 $10.000 55.000110000125.000.000 14 Total Material Cost 564,500.00 The outsourcing cost per ses The amount in partes et 15 Total Labor Cost $ 60,000.00 The partie The first eft)colum represent the production value 16 Total Cost $ 149,500.00 Left compresent production volume The top row amounts represent "Outsourcing Cost per unit 17 Light conting due to touring The amount in excellent adotto 13 Savings due to outsourcing $14.500.00 19 Assuming that you outsource the production of 50,000 units and the company to which you outsource charges you 54.50 per unit based on the results above, how much will be the savings (or 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 $99, the answer is-99. If there is a saving of $99, then the answer is 99