Answer Happy

QUESTION 1 54.000 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 C D G H M 1 Parameters 2 Outsourcing Cost per unit 4.50 Savings due to outsourcing per prod. volume Savings due to outsourcing per prod. volume and outsource cost per Prod. Vol. $ 14,500.00 S 14500.00 $ 205 4355 4505 4.65 4 Foxed Cow $ 25,000.00 10000 $21.500 10000 $24.500 $23,000 $21.500 $20,000 SIS 5 Material cost per unit $ 2.15 20000 511,000 20000 524.000 521.000 $18.000 515,000 $12.000 6 Labor cost per unit $ 2.00 30000 $14,500 19000 523.500 $19.000 5140 $10.000 55.500 7 оооо $11.000 40000 $21,000 $17.000 511.000 55.000 1.000 8 Model 30000 $7,500 0000 $22.500 $15.000 57,500 50 137.500 9 Production Volume 10000 GOOD 6000 522.000 511,000 HD 53.000 14.000 10 70000 $500 1000g $21.500 $11,000 $5.00 10.000.00 11 Total Outsource Cost $ 135.000.00 10000 $3.000 000 $21,000 59.000 53.000 ISO 2700 12 90000 196.500 30000 $20,500 $7.000 SASCO 15.10.000.00 1 Total Fed Cost $ 25,000.00 300000 1510 000 100000 $20.000 55.000 510.000.000 15.000 14 Total Material Cost $ 64,500.00 The outsourcing cost per unit is $4.50 The amount the 15 Total Labor Cost 5 60,000.00 The amount in paranthese tivero The first ut most column represents the production volume 16 Total Cost $ 149.500 DO eft column represent productor volume The top row amounts represent "Outsourcing Cost per unit 17 Right column represent "Savings due to outsourcing The amount in each cell represent "Savings due to sourcing 38 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? O 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 O 60,001 to 70,000 0 70,001 or more It cannot be determined