QUESTION 1 As the CEO of Hakoopian clothing company you want to decide whether to manufacture a particular product or ou

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Question 1 As The Ceo Of Hakoopian Clothing Company You Want To Decide Whether To Manufacture A Particular Product Or Ou 1 (40.11 KiB) Viewed 37 times

QUESTION 1 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 1 Parameters 2 Outsourcing Cost per unit 450 savings due to outsourcing per prod. volume Saving due to outsourcing per pred volume and outsource cont per Prod. Vol. 5 14,500.00 14.500.00 420 54355 4 Feed Cont $ 25,000.00 10000 $21.900 10 $24.SO $21.000 1.500 520.00 SIAS 5 Material cut per unit $ 2.15 20000 510 000 29000 $74,000 521.000 S000 525.000 $12.00 6 Labor cost per unit 5 200 30000 $14,500 1.500 $19.000 $14500 $10.000 2 40000 $11,000 0000 571.000 $17.000 $11.000 55.000 Model 30000 57.500 10000 $12.500 315.000 $7.900 50 5 Production Volume 10000 10000 $4,000 BODO $32.000 $11.000 50.000 O 01 10 70000 5500 $21.500 $11.000 $500 5100 11 Total Outsource Cost 5 115,000.00 10000 1000 0000 $21.000 59.000 51.00 15.000 12 0000 1560 0000 520.500 $1,000 Hoj.com 13 Total Fixed Cost $ 25,000.00 100000 sino 100000 5.30 000 55.000 14 Total Material Cost $ 64,500.00 The outsourcing cover $4.50 Theatre 15 Total Labor Cost SO 00000 The amount in partner The first tout comments the production 16 Total Cost $ 149,500.00 Left column represent production volume The top rowemu represent tourcing Coperni." 17 Raght column represent "Savings due to outsourcing The amount in each call represent "Saving the tools 1 Savings due to outsourcing $ 14,500.00 19 Assuming that the company to which you outsource charges you 54.80 per unit, based on the results above, which range for production volume contains the break even point? 10,000 to 20,000 © 20,001 to 30,000 30,001 to 40,000 40,001 to 50,000 50,001 to 60,000 60,001 to 70,000 70,001 or more It cannot be determined