QUESTION $11.000 70000 As the CEO of Hakoopian clothing company you want to decide whether to manufacture a particular p

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Question 11 000 70000 As The Ceo Of Hakoopian Clothing Company You Want To Decide Whether To Manufacture A Particular P 1 (48.61 KiB) Viewed 42 times

QUESTION $11.000 70000 As the CEO of Hakoopian clothing company you want to decide whether to manufacture a particular product or outsource its production. Your business analys 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 H M 2 Outsourcing Cost perit 4.50 Saving due to outsourci per prod, volume Savings due to outsourcing per prod. volume and outsource cost per 1 red. vel 1A500.00 5 14,01 DO 5 4.35 4.50 4.15 4.16 Fixed cost 525,000.00 10000 $21.500 1000 524,500 $23.000 $21.500 120.00 S Material cost per unit $ 2.15 20000 $18 000 1000 $94,000 $21.000 Si.000 $15.000 912.000 6 Labor cost per unit $ 2.00 30000 514.500 10000 $23,00 $19.000 $14.500 510.000 55.00 7 4000 4000 $23.000 517000 511,000 55.000 15100 Model 10000 57.500 wood $22.500 $15.000 57,500 50 9 Production Volume 10000 6000 S4,000 60000 $22.000 $13.000 $4.000 s. 14.000 10 COOO $500 $21.500 $11.000 5500 1510.000 $10. 11 Total Outsource Cost $ 135,000.00 10000 152.0001 10000 $21.000 $9.000 53000 5150 (23.00 12 90000 1560 9000 $20,500 $7.000 156.500 520 533.500 13 Total Fhed Cost $ 25,000.00 100000 1510.000 100000 $20.000 55.000 10.000) $25.000 14 Total Material Court $ 64,500.00 The outsourcing cost per unit 54.50 The amount in paranthes gives 15 Total Labor Cost $ 60,000.00 The amount in parantheses are the The first eft mast) column represents the production volume 16 Total Cost 5 149.500.00 Left column represent production volume The top row amounts represent Outsourcing Cout per unit. 17 Right column represent Savings due to outsourcing The amount in each cell represent av detta otsong 18 Savings due to outsourcing $ 14,500.00 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 599, then the answer is 99