QUESTION 10 As the CEO of Hakooplan clothing company you want to decide whether to manufacture a particular product or o

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Question 10 As The Ceo Of Hakooplan Clothing Company You Want To Decide Whether To Manufacture A Particular Product Or O 1 (43.44 KiB) Viewed 55 times

QUESTION 10 As the CEO of Hakooplan 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 Parameters 2 Outsourcing Cost per unit Saving due to outsourcing per prod. volume Savings due to outsourcing per prod. volume and outsource cost per unit 3 Prod Vol.5 14.500.00 $14.500.00 420 54355 4505 45 Fred Cost $ 25,000.00 10000 $21,500 10000 524500 $20,000 521.500 $70,000 SHSCO 5 Material cost per unit $ 2.15 20000 $10,000 10000 $4,000 $71.000 $18,000 515.000 $12.000 6 Labor cost per unit 5 2.00 30000 514.500 30000 $23.500 519,000 $140.500 $10,000 $5.500 7 10000 $11,000 4000 $23,000 517.000 $11.000 55.000 000 Model 50000 57.500 Wood 522.500 $15,000 57.500 50 7.00 9 Production Volume 000 10000 54.000 togoo $22.000 $13,000 $4.000 S. 514 10 70000 $500 7000 $250 $11,000 $500 510.000) 11 Total Outsource Cost 5.135.000.00 20000 151001 ROCCO $21,000 59.000 S. 55.000.000 12 0000 156 Sool OOO $20.500 $7.000 50 .co. Total Fixed Cou 5 25,000.00 100000 1510 000 100000 $20.000 55.000 10.000.000 14 Total Material Cost $ 64,500.00 The outsourcing cout it is $450 The most protheses rebe 15 Total Labor Cost $ 60,000.00 The amounts in partenente The first most compress the production 16 Total Cost $ 149,500.00 Laft.colum present production volume The top row mounts represent "Overcing Cost" 17 Night column present Savings or to viewing The amount in each cal represent "Savings de touring 18 Savings due to outsourcing 514.500.00 19 Assuming that the company to which you outsource charges you $4.65 per unit, based on the results above, at what production volume is the break even point) Note: . Do not use the sign in your answer. For example, if there is a saving of 599, 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 or $99, then the answer is 99