Answer Happy

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 diferent scenarios. The results below are provided to you as the CEO D 1 Parameters 2 Outsourcing Cost per unit 450 Saving due to outsourcing per prod, volume Savings due to outsourcing per prod. volume and outure cont permit Prod. Vol. 514,100.00 14500.00 5 2015 LOS 16 4 Fixed Cost $ 25,000.00 10000 $21,500 1000d 524500 $23.000 $21.00 $20.000 || 5. Material cost per un 5 2.15 2000 $18,000 10000 $14.000 $11,000 S.CO $15.000 $12.000 6 Labor cost per unit 5 2.00 10000 $14,500 0000 $23.500 $19.000 $14.00 $10.000 $5.500 000 $11,000 573.000 517 000 511.000 S.DOO Model 10000 $7,500 OOO $27.500 $15.000 57.900 7. 9 Production Volume Sood 54.000 $27,000 $13,000 54.000 16.00 $14.000 10 7000 $21.500 $11.000 $300 51001 11 Total Outsource Cost $ 115,000.00 AO (51.000 521.000 99.000 12 30000 156.500 $20.00 57.000 154.20.000 1.500 13 Total Fixed Cout $ 25,000.00 100000 1510.000 $20.000 14 Total Material Cost 564,500.00 The outsourcing cost per unit is so Tech 15 Total Labor Cout $ 60,000.00 The amount in parts are negative The first most com represents the production volume 16 Total Cout $ 149,500.00 Left column represent production volum The top row amounts reservering Content 17 Right calumn represent Savings due to outsourcing The amount in each cell represent Savings to 14 Savings due to outsourcing 14.00.00 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 899, then the a answer is 99
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 Parameters 2 Outsourcing Cost perut 4.50 Savings due to outsourcing Prod. volume Saving due to outsourcing prod volane and ECO PER Prod. Vol 14.500.00 14,500 DO 420 $ Fixed Cost 455 450 $ 25,000.00 10000 $21,0 10000 $24.500 5 Material cost perunt 523,000 $21.500 $70,000 $ 2.15 SI500 20000 $18,000 524,000 521.000 $10.000 SI5.000 $12.000 6 Labor cost per unit $ 2.00 10000 $14, MO 20300 $21.500 19.000 $14.500 SLO.000 $5.500 7 40000 $11,000 0800 $23.000 $17.000 $11,000 $5.000 8 Model 1.00 10000 $7.500 10000 $22.500 $15.000 57.100 $0 S. 9 Production Volume 30000 60000 $1.000 Looc $22.000 513.000 $4.000 5,000 $8.000 10 70000 $500 70000 $21.500 $11.000 3500 50.00 50.00 11 Total Outsource Cost $ 135,000.00 10000 USB O $21.000 $9,000 53.000 515,000 27.000 12 90000 $20,500 57.000 (56.500 10.000 ISO 13 TotalFeed Cost $ 25.000.00 100000 1510 000 300000 $20,000 $5.000.000 1525.000000 14 Total Material Cost $64.500.00 The outsourcing cost per unit is $50 The amount in parte 15 Total Labor Cost 50.000.00 The amountain parents are get The first fet most column represents the production value 16 Total Cost $ 149,500.00 left column represent production volume. The top rowermounts represent "Outsourcing Costerunit." 17 Right column present Savings due to outsourcing The amount in each element Saving dee to outsourcing 18 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?
Assuming that the company to which you outsource cha break-even point? 10,000 to 20,000 20,001 to 30,000 30,001 to 40,000 O 40,001 to 50,000 50,001 to 60,000 60,001 to 70,000 O 70,001 or more O It cannot be determined.