The Operations Manager At Sebago Manufacturing Is Considering Three Proposals For Supplying A Critical Component For Its 1 (46.48 KiB) Viewed 9 times
The operations manager at Sebago Manufacturing is considering three proposals for supplying a critical component for its new line of electric watercraft. Proposal one is to purchase the component, proposal two is make the component in-house using rebuilt equipment, and proposal three is to purchase new, highly automated equipment. The costs associated with each proposal are provided in the table below. At what quantity range will each option be preferred? Click the icon to view the costs associated with each proposal. Proposal one will provide the lowest annual cost if between responses as whole numbers.) and components are required annually. (Enter your
Proposal two will provide the lowest annual cost if between Proposal three will provide the lowest annual cost if greater than and components are required annually. (Enter your responses as whole numbers.) components are required annually. (Enter your response as a whole number.)
More Info Proposal One: purchase Two: make with rebuilt equipment Three: make with new equipment Annual cost of capital required $0.00 $200,000.00 $425,000.00 Variable cost of each component $19.00 $11.00 $7.00 - X
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