Answer Happy

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. с D G H 1 Parameters 2 Outsourcing Cost per unit Savings due to outsourcing per prod. volume Savings due to outsourcing per prod. volume and outsource cost per unit Prod. Vol. $ 14,500.00 5 14.500.00 $ 420$ 4355 450 $ 2655 010 4 Fhed Cost $ 25,000.00 10000 $21.500 1000g 524.500 $20,000 $21.500 $20,000 SL500 5 Material cost per unit $ 2.15 20000 $18,000 20000 534.000 521,000 511.000 $15,000 517.000 6 Labor cost per unit $ 2.00 30000 514500 30000 $23.500 $19,000 $14.500 $10.000 $5.500 7 40000 511,000 10000 521.000 $17.000 $11.000 55.000 131.000 8 Model 30000 $7,500 50000 $22,500 $15,000 57.500 50 157.500 9 Production Volume 1000g L0000 $4.000 OOOO $22.000 513,000 54.000 $5,000 14.000 10 70000 5500 2000 $21.500 $11,000 $500 $10,000 20:00 11 Total Outsource Cost $ 135,000.00 30000 153,000 BOCO 521.000 59,000 151.00015.15.000 17.000) 12 30000 16.500 3000 $20.500 57,000 156 $30.000 1.500 13 Total Fixed Cost $ 25,000.00 10000 1510.000 100000 $20,000 55.000 1510.000 25000 14 Total Material Cost 5 64,500.00 The outsourcing cost per unit is $4.50 The mountain prothese reseptive. 15 Total Labor Cost $ 60,000.00 The amounts in porentheses are not loud The first left-most) columt presents the production volume 16 Total Cost $ 149,500.00 Left column represent production volume The top row amounts represent "Outsourcing Cost per unit 17 Right column represent "Savings due to outsourcing The amount in each cell foresent "Swing us to outsourde 18 Savings due to outsourcing 14.500.00 19 Assuming that the company to which you outsource charges you $4.80 per unit, based on the results above, which range for production volume contains the break-even point? 10,000 to 20,000 O 20,001 to 30,000 30,001 to 40,000 40,001 to 50,000 O 50,001 to 60,000 O 60,001 to 70,000 70,001 or more It cannot be determined